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The office real estate crash will be so sharp and deep that Capital Economics thinks office values are unlikely to recover by 2040 (fortune.com)

submitted 1 year ago by Girlparts@kbin.social to c/news@kbin.social

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The research firm’s top property economist likens the decline in office demand to what malls have experienced over the last six years—and sees a similar outcome.

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[–] sadreality@kbin.social 6 points 1 year ago

It is possible to retrofit but as u/dismalnow points out zoning is a big issue but there is also issue of economics. These building need to be sold at a steep discount for redevelopment to be economically viable. This requires that current owners book their losses and sell but they won't until they can't refinance, first wave is due 2024-2025. Many bagholders will have to face the music, let's see what they will do. I am sure smart developers are already stacking cash for deep value shopping. With that being said many Class B/C office towers are utter trash to a point where it is more economical to just level them. I don't know why local governments allowed them to be built...