“There’s almost no liquidity in the office market. No one knows where pricing will be when one of these towers finally sells.”
It’s kind of sobering. Reality has that effect, after a drunken binge.
As the condo market is going south on you, you can always try to sell the tower to an investor to convert to rental apartments. But that’s tough too.
Our property with a Walmart store has arguably declined 25% in value in the last six months. But cash-flow hasn’t changed.
We listed a 40-unit apartment building in the East Bay, a couple months too late, and a shopping center in Silicon Valley. Here’s what happened.
His number came in 100% more than the cost of our last store, and the deal no longer penciled out.
Commercial Real Estate hit by construction boom, oil bust, pandemic, working from home, now hiring freezes and layoffs. Older office towers dish out huge losses.
Among the tenants that decided not to re-open their stores along the Mag Mile were Macy’s, Uniqlo, and the Gap.
Older office towers are besieged. Working-from-home and hybrid-work aren’t helping. The losses are huge.
Office vacancy rates are already huge, foreclosures of office towers are piling up, and office attendance is still very low, everywhere.