US commercial real estate suffers as telework becomes the new norm

https://www.foxbusiness.com/fox-news-us/us-commercial-real-estate-suffers-telework-becomes-new-norm

HYPERLINK has full article

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"Office vacancies in the U.S. are currently at about 18.4% which is a historical high. As a point of comparison, it was about 12% right before the pandemic in late 2019" Whalen said.

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I have friends in the banking industry and they say that the shoe is dropping with respect to commercial real estate. It's not just Covid that changed things. Retail space is vacant, layoffs continue across the nation. Wework entered Chapter 11 and Regus is breaking leases citing silly reasons like we saw in the Vornado case (Regus lost).

The RV and marine industry are seeing loan defaults, repossessions and of course sales are down 50% to boot.

The storm clouds of really bad news from banks are on the horizon.

 

Yeah, computers. Since they came around 60 or 70 years ago, they are changing things.

 

Also, remote workers can be cheaper for the company, with the same salaries paid, as they do not have to purchase or lease commercial real estate.

 

First to go are the toys.. Great time to snag a toy at a very low price..

 

it's not just "remote workers"

closed dealer lots such as automobile, marine and RV
shuttered malls, strip malls and freestanding commercial buildings

reduced footprint of businesses due to layoffs.

 

Not really..

 

I am just going by your OP.

 

for those with cash; you are correct. Interest rates are sky high to buy toys and it's risky for banks.

We have a boat and a motorhome and see folks who overpaid a couple years ago that are now trying to sell. it might be that they are not boater or campers. It might be that their financial situation like many has worsened. Either way, many are asking a price that is MORE than new units can be purchased. Manufacturers are offering rebates and dealers need to unload their inventory.
For those who over-paid and financed, many are looking at repossession.

 

Well, that patently and publicly fails to rebut what I stated.

 

No really..

 

Yes really. I clearly said it can, and you come back with some off topic quip and then sit there and repeat your failure, insisting it was not.

 

Nope.

 

this was a test run for corps, when employees can work from home, they can be outsourced overseas

 

Again, that does nothing to counter my original post to which you were responding. I clearly noted that a company could potentially save money regarding real estate expense, and you come back with something on a completely different topic.

 

Sure it does.. If companies were benefiting from remote workers, as you suggest, then why are they 43% requiring workers to return to the office?

 

The topic was real estate, I was responding to that topic. Your off topic claims have nothing to do with anything I said. I have no in interest in exploring some rabbit hole you put forth.

 

Didn't look that way to me..

 

I cannot attest to how things look to you. To me, my post seems shockingly clear and concise. If you found it otherwise, that is on you.

 

Sorry

 

I'm sorry but I can't get up in arms about remote working - I think its great for both the workers and the employers. And it looks as though people are finally being held accountable for buying things they really can't afford. Sounds like a grand 're-set'. Now let's see which companies are nimble enough to adjust to the new normal.

 

Ha! Everyone is being held accountable, except for politicians!

 

And yet the economy is doing well.

http://www.politicalforum.com/index...rth-quarter-much-better-than-expected.616250/

You seem to delight in cherry-picking things that you spin as bad news for the economy, but ignore the macro scale. The doom-and-gloom schtick is getting old.

As much as Trump and his MAGA sheep may want the economy to tank, it’s actually doing pretty well.

 

Don't worry. They will all be converted into apartments and condos. (since those are the new "offices")

 

I noticed that many RV salespeople are looking for work. It is not a good time to be in the luxury business.

 

Not where I work in NW Arkansass, the market is red hot, they can't build fast enough and prices are sky high...