4 ms·

This feels like the exact situation that aligns with "Things go wrong very slowly, then all at once."

• jeffbee 3y ago
  It's good for basically everyone, except banks, when the lenders ultimately write down these losses. It frees the market from mental hurdles that discourage leasing activity and will lower rents more quickly. Lower commercial rents are a benefit to the other 99.95% of economic activity. The only thing I find really inexplicable is those few submarkets where vacancies are high and rising, net absorption is negative, and they are still expanding the inventory by 2% or more annually. That's truly baffling but maybe those investors have reason for optimism.
  • tsunamifury 3y ago
    Like Austin? I think it’s mostly places where that expansion was planned and financed long ago right?
    • jeffbee 3y ago
      Austin is the really weird one, yes. I think they delivered 2+ million square feet of new space each of the last three years.