The formerly hot asset class was already troubled by a multiyear decline in student enrollment and a surge in upscale supply.
New York City, San Francisco, Honolulu are still down over 80% from a year ago in terms of “seated diners.” Then there is the “LN-shaped” recovery in Pittsburgh.
As so often, this started well before Covid, but Covid is speeding up the process.
I’m standing in the middle of the street to take this photo. Why? Because I can.
Large-scale shifts triggered by work-from-home, staggering unemployment crisis, and oil-and-gas bust. Rents respond in real time.
Every city is confronted with dying malls and vacancy-pocked shopping districts. Is there a cure? No. The failing retailers were already on their way to the morgue. Is there a vaccine that will help? Yes.
Those markets are already getting hit.
“Extend and Pretend” forevermore?
“There will be a long-term adjustment in how we think about our location strategy…the notion of putting 7,000 people in a building may be a thing of the past”: Barclays CEO. And companies are following through.
There is no recovery for office space. The number of people going to the office has declined over the past four weeks.