Commercial real estate is in turmoil, but San Francisco’s glut is dwarfed by the fiascos in Houston and Calgary.
As seen by indicators that have sprung up as a result of the Pandemic.
Landlords and their lenders who’re still thinking work-from-home is just a blip will undergo a reckoning in due time.
With impeccable timing.
Four of the six hotels that REIT Park Hotels & Resorts owns in San Francisco are closed, with convention & business travel at near-zero.
“Hybrid workplace,” it calls it. The trend for many companies with office workers and enough tech savvy to pull it off. A nightmare for landlords.
“Sublease Pandemic?” Office leasing activity plunged or collapsed, depending on city, even as huge amounts of sublease space that companies no longer need got dumped on the market.
Another 34% markdown. The haste with which creditors want to execute the sale adds to the gloom.
Office Workers Are Again Told to Work from Home, Retailers Don’t Pay Rents, UK Commercial Property Owners Sink Deeper into the Mire.
“Some things actually work really well virtually”; but “the vast majority of us can’t wait until we can be back in the office.”