Commercial real estate in New York City is facing significant challenges with about 22% vacancy rates in office spaces. Real estate developers are exploring transforming office buildings into residential apartments to address the high vacancy rates. The shift towards residential properties is evident as NYC rental vacancy is at an all-time low of 1.4%, while commercial real estate has approximately 20% vacancy and 52% occupancy. Build-to-rent (BTR) properties have seen a substantial 270% growth since 2019, with a notable 62% increase from FY22 to FY23 alone. Housing CEOs and experts are considering converting vacant office buildings into residences as a potential solution to the housing crisis, with support for tax credits to incentivize such conversions. The distress in the commercial real estate sector is further highlighted by over $38 billion worth of office buildings showing signs of financial strain nationwide, leading to the sale of distressed office buildings in Chicago at significant discounts.
Fmr. NYC Real Estate Developer Bruce Ratner Says Commercial Real Estate is ‘Finished’, Buildings May Be Turned Into Residential Housing “When you have vacancy rates in this city of 25% and occupancy rates of almost 50% or less than 50%, it can't recover, and that's because our… https://t.co/iFK3l153aM
JUST IN: Two more prime distressed office buildings in Chicago are hitting the market - 444 N. Michigan Ave: Lender is Blackstone - 30 W. Monroe St: Lender is NY Life Insurance The buildings are expected to be sold at massive discounts Commercial real estate in parts of… https://t.co/ppvRuqCCl3
Over $38 billion in office buildings show signs of distress in downtowns across the nation as the sector continues to struggle through the high rate environment. https://t.co/qkS2rbAUcd
Commercial real estate faces a ‘slow moving train wreck.’ Here are some fixes. https://t.co/a0jYiez1RZ
Vacant office buildings can be part of the solution to the housing crisis. I asked witnesses from commercial real estate if a tax credit incentivizing conversion of vacant office buildings into residences would help alleviate our housing shortage. Their answer: yes. https://t.co/xd61lUr9Eb
Why one housing CEO is betting many Gen Z and millennials would rather rent homes than buy Despite the spike in interest rates, CEO John Isakson of ARK Homes for Rent has big plans to expand. ResiClub PRO piece I let @FastCompany pub 👇 https://t.co/DoqNcWfOpQ
If I'm sitting on capital as a real estate investor right now; I am thinking only about residential. NYC rental vacancy is at an all time low: 1.4%, but CRE has ~20% vacancy and occupancy is @ 52% Build-to-rent (BTR) has grown 270% since 2019. (+62% from FY22 to FY23 alone)… https://t.co/kHgaQGwkHb
If I'm sitting on capital as a real estate investor right now; I am thinking only about residential. NYC rental vacancy is at an all time low: 1.4%, but CRE has ~20% vacancy and occupancy is @ 52% Build-to-rent (BTR) has grown 270% since 2019. (62% from FY22 to FY23 alone) ATH… https://t.co/kHgaQGwkHb
If I'm sitting on capital as a real estate investor right now; I am thinking only about residential. NYC rent vacancy is at an all time low: 1.4%, but CRE is -25% vacancy and occupancy 52% Build-to-rent (BTR) has grown 270% since 2019. (62% from FY22 to FY23 alone) ATH on cash… https://t.co/kHgaQGwkHb
For the past three years, about 22 per cent of office space in New York has gone unrented. A real-estate developer who specializes in transforming office spaces into apartments has helped show desperate office-tower owners a way out. https://t.co/r5AhJ2J5tw