Remote-Work Revolution Has Wiped Out $453 Billion In Commercial Real Estate Value

Leading up to the Covid-19 pandemic, roughly 95% of commercial office space was occupied across the United States, according to US National Bureau of Economic Research (NBER) – a nonprofit, non-government organization. By March 2020, occupancy plummeted to 10%, and has only recovered to 47%, according to a new NBER report which claims $453 billion in office commercial real estate value has been wiped out in an "office real estate apocalypse."

...

What this means is that commercial real estate - a popular choice for pension fund managers and investors alike - may not be the best idea for the foreseeable future, given the continuing work-from-home options adopted by corporate America.

Remote-Work Revolution Has Wiped Out $453 Billion In Commercial Real Estate Value

Well, chalk this up to yet another seismic consequence of the strategy adopted by government appointed bodies to manage the COVID chaos. Actually, this may be the intended COVID chaos, if you can accept that someone can make big money from the bottoming out of real estate value... someone usually does.

The supporting document in the article (WORK FROM HOME AND THE OFFICE REAL ESTATE APOCALYPSE) simplifies the cause over and over, in a way most infuriating to my simple understanding...

Such as:

"...in the wake of the Covid-19 pandemic."
"...pandemic-induced cash flow..."
"The Covid-19 pandemic led to drastic changes..."

Never once attributing the "cause" of this economic as what they really were...

The pandemic did not "cause" this... what caused this was OUR reaction to, and governance of, the event as a nation.

But hey, this little number will probably become another excuse why they should get more money from the government (meaning tax payer dollars - because ... poor us.)

Sorry after the last thread I made I got a little attack of the cynicals.

That is why I mentioned Black Rock will disappear in the middle of the night.
I don't have that thread to post, maybe someone here remembers it?

originally posted by: Maxmars

Leading up to the Covid-19 pandemic, roughly 95% of commercial office space was occupied across the United States, according to US National Bureau of Economic Research (NBER) – a nonprofit, non-government organization. By March 2020, occupancy plummeted to 10%, and has only recovered to 47%, according to a new NBER report which claims $453 billion in office commercial real estate value has been wiped out in an "office real estate apocalypse."

...

What this means is that commercial real estate - a popular choice for pension fund managers and investors alike - may not be the best idea for the foreseeable future, given the continuing work-from-home options adopted by corporate America.

Remote-Work Revolution Has Wiped Out $453 Billion In Commercial Real Estate Value

Well, chalk this up to yet another seismic consequence of the strategy adopted by government appointed bodies to manage the COVID chaos. Actually, this may be the intended COVID chaos, if you can accept that someone can make big money from the bottoming out of real estate value... someone usually does.

The supporting document in the article (WORK FROM HOME AND THE OFFICE REAL ESTATE APOCALYPSE) simplifies the cause over and over, in a way most infuriating to my simple understanding...

Such as:

"...in the wake of the Covid-19 pandemic."
"...pandemic-induced cash flow..."
"The Covid-19 pandemic led to drastic changes..."

Never once attributing the "cause" of this economic as what they really were...

The pandemic did not "cause" this... what caused this was OUR reaction to, and governance of, the event as a nation.

But hey, this little number will probably become another excuse why they should get more money from the government (meaning tax payer dollars - because ... poor us.)

Sorry after the last thread I made I got a little attack of the cynicals.

I can remember a few here arguing that this would be a consequence if not the flat-out reason for the extended lockdowns.

originally posted by: Maxmars

Such as:

"...in the wake of the Covid-19 pandemic."
"...pandemic-induced cash flow..."
"The Covid-19 pandemic led to drastic changes..."

Never once attributing the "cause" of this economic as what they really were...

The pandemic did not "cause" this... what caused this was OUR reaction to, and governance of, the event as a nation.

But hey, this little number will probably become another excuse why they should get more money from the government (meaning tax payer dollars - because ... poor us.)

Absolutely right on a lot of levels. The vast majority of us took it Hook, Line, and Sinker and are now in an aquarium thinking it's not a glass box.

One could think that the little guy was actually winning against the big guys. (So much loss.)

Sorry after the last thread I made I got a little attack of the cynicals.

They are not mad at you. They know they are wrong and cannot accept it because it would reflect this terribleness of their lives from living the lie. I'd take it as a sign that you are doing something right. Don't hold back. Share it, speak it loud. Soon they will listen or become further lost in the fog of hate.

Commercial real-estate is dropping at twice the rate homes. Look around where you live.

a reply to: Maxmars

I guess the only thing that I can do is to scoop up commercial real estate, have it rezoned, and convert it into spendy condos or something.

a reply to: Maxmars

I know that when I was selling cell phones in the 1980s and early 90s I was thinking about the fact that you’re not gonna need an office pretty soon. Later on I was in the business of selling computers and those were getting so cheap I realized you’re not gonna need those office buildings with all those computers if they’re all in peoples houses so this commute that I make into work is not going to be a necessary one day and that day has materialized. The time has come when skyscrapers are going to be vertical farms. We can probably use all those stacks of filing cabinets we no longer need in those buildings any more to build the border wall.

COVID + The U.S. FED raising interest rates have killed CRE for who knows how long.

Time for the big conglomerates to start knocking down CRE and building new residential high rises !!!!!

a reply to: Maxmars

It's more of a value deferral. They needed to bring prices down while interest rates were low enough for the "proper" buyers to come in and purchase it all..

Simple money grab wealth exchange.. like they always do

originally posted by: Infinitis
a reply to: Maxmars

It's more of a value deferral. They needed to bring prices down while interest rates were low enough for the "proper" buyers to come in and purchase it all..

Simple money grab wealth exchange.. like they always do

I would have to agree... with some sadness.

This - like all other 'offshoots' of the thing the disease apparently did - will lead to wealth being in fewer private hands, and increased profit opportunity for fewer people.