For Rent

[George K]

[LuFins Dad]

Yep. It’s bad. As we discussed in 2020, commercial real estate was screwed. Not by the direct shutdowns from COVID, but by the realization by many companies that their efficiency wasn’t drastically reduced and they can be highly productive with work from home, thereby cutting their corporate overhead. A lot of companies have switched to hybrid models where you are in 2-3 days and work from home 2-3 days, cutting down the space your company needs. As leases are expiring, they aren’t being renewed, or are being renewed at less floor space.

The prices are being driven down, I would expect a plateau in 2 years or so, then a modest rebound as companies decide to take advantage of the cheap real estate and will start to expand their operations. You will also have some of the commercial space be rezoned for residential and will see a lot of that space become apartments. That will help with the rental rates to some extent.

The market will correct and adjust.

[George K]

I go downtown (Michigan Ave Area) about once a month. It's pretty quiet there....

[Copper]

I guess some people don't like crowds, crime and traffic.

[Jolly]

@LuFins-Dad said in For Rent:

You will also have some of the commercial space be rezoned for residential and will see a lot of that space become apartments. That will help with the rental rates to some extent.

I wonder how cheap is cheap enough to move people back into city centers, especially if all the things they want (supermarkets, etc.) aren't there...

[jon-nyc]

I think a lot of downtowns are going to shift toward residential. If the woke DAs don’t destroy them.