Commercial Observer (June 1)
“For the illiquid world of private credit — which provides debt for commercial real estate projects -– and that of private equity, the recent upheaval in the U.S. regional banking sector and issues plaguing downtown office space has sparked questions surrounding the type of returns CRE can generate for investors. The primary question being: Is a golden moment possible in the darkest of times?”
Tags: Commercial real estate, Debt, Downtown, Illiquid, Office space, Plaguing, Private credit, Private equity, Regional banking, Returns, U.S., Upheaval
Fortune (April 4)
“After the banking crisis, could the next domino be all those empty office buildings in your downtown? Investors and economists are sounding the alarm about the commercial real estate market, seeing trouble ahead with refinancing. This sector has been hit hard for years now with the shift to remote work bringing about rising vacancy rates and falling property values.”
Tags: Alarm, Banking crisis, Commercial real estate, Domino, Downtown, Economists, Empty, Investors, Market, Office buildings, Refinancing, Remote work, Sector, Trouble, Vacancy rates
Wall Street Journal (April 3)
“For decades, American cities have had a parking problem: too much of it. Countless residential parking spots go unused, and many downtown garages sit half empty. Ride-sharing and the rise of remote work during the pandemic have aggravated the trend.” In response, “cities are shrinking the number of spaces, freeing up the land for other uses, with far-reaching consequences.”
Tags: Aggravated, Cities, Consequences, Downtown, Empty, Garages, Pandemic, Parking spots, Problem, Remote work, Ride-sharing, Trend, U.S., Unused
Washington Post (March 4)
“Cities across the nation face a dilemma: Downtown office buildings are empty as workers prefer to stay home.” Office-to-apartment conversion is an essential “part of the solution,” but “city leaders aren’t doing enough…. The longer cities wait to get conversions underway, the more tax values drop and crime goes up, and the more people see no value in living in the heart of the city — or even visiting.”
Tags: Apartment, Cities, Conversion, Dilemma, Downtown, Empty, Home, Leaders, Office buildings, Solution, Tax values, Workers
Chicago Tribune (September 24)
“Many employers pushed Labor Day return to office plans back as the delta variant fueled a resurgence in COVID-19 cases—another setback for businesses catering to the Loop’s formerly bustling office crowd. While businesses like coffee and shoe repair shops are optimistic their customers will eventually return, they may be downtown less often and may need time to rebuild old habits.”
Tags: COVID-19, Customers, Delta variant, Downtown, Employers, Labor Day, Loop, Office, Old habits, Resurgence, Return, Setback, Shops
Boston Globe (February 2)
“More than 10 months into a pandemic that has all but emptied downtown towers, the long-term future of offices in Boston remains unclear. Vacancy rates downtown are the highest they’ve been in a decade. There’s more than 3.5 million square feet available for sublease from companies holding long-term leases on space they’ve decided they no longer need. Rents, after climbing steadily for years, are starting to fall.”
Tags: Boston, Companies, Downtown, Emptied, Future, Leases, Long term, Offices, Pandemic, Rents, Sublease, Towers, Vacancy
