Same in NYC. LLs have lowered rental prices especially those that we’re charging crazy high rents. They been humbled but we haven’t seen huge drops in purchasing prices. Landlords I’ve talked to refuse to believe what we are seeing is permanent and are choosing to wait it out. Smaller LLs don’t have a large cushion though
As commercial restate collapses im interested to see if home prices drop
I don’t think it’s permanent. It’s the opening a lot of older millennials and younger gen X needed to get into the burbs and out of apartment life, but by 2022, companies will be back in the office. The googles, Microsoft’s, twitters, facebooks don’t represent the majority of companies who will want their employees in office, at least part of the week. And most of these companies will still be in the same majors metros. Only thing I’m interested in is if large companies go to more satellite offices vs big headquarters to cater to a more dispersed workforce. But people fresh out of school - at all levels - are still going to want the energy of cities, along with all it brings such as a wider dating pool, more activities/entertainment, etc. and to be in offices at least part time to build the rapport and get the mentoring they need to be more visible and move up.
That’s said, like you said, small landlords don’t have the cushion to wait this out. I currently have a vacancy going three months, my building has never had a unit I couldn’t fill in 4-6 weeks or less. It wouldn’t be that big of an issue except I’m trying to move cross country so I’m not trying to fill the gap on the mortgage and pay my own rent (the city is also after me for business taxes
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why would anyone sell SQ.
