Caleb Titherington on LinkedIn: Q1 2024 Office Sales Dip to $5.4 Billion, 17% Below Last Year's Figure (2024)

The reality is office real estate is not as valuable as it once was and someone (notably lenders and CMBS stakeholders) is going to have to take the loss on it.Fewer companies need office space--and those that do require less of it. Hybrid work schedules and remote work has uncovered potential efficiencies in a company's real estate footprint.And if a company does sign a lease for 25,000 square feet, you can bet it needs to be built out and amenitized. It's going to cost more for a landlord to attract credit-worthy tenants.

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Office occupancy at all-time lows + interest rates at all-time highs + mortgage loan coming due = Once in a lifetime buying opportunity. This 60 Minute story by Jon Wertheim and contributors Marc Holliday from SL Green Realty Corp., Scott Rechler of RXR, Tony Park and Elad Dror PD Properties LLC, David Aviram, Ted Martell of Maverick Real Estate Partners and Stijn Van Nieuwerburgh from Columbia University, clearly lays out the significant issue with commercial real estate, particularly the office sector, post-pandemic with hybrid work and historically high interest rates. “There’s pain coming. Not just for building owners and banks, but for cities themselves.” Jon Wertheim, 60 MINUTES.With every crisis comes opportunity. The perfect storm has been brewing in office buildings all across the country. Which cities will be best positioned to win the confidence of investors?“Older office buildings are no longer fit for purpose. We have to redesign it. More space for communities. More space for artists. Maybe pickleball courts (shout out Josh Krsnak and Hempel!) There’s lots of different uses for these buildings, especially when you canbuy them at a depressed price.” Stijn Van Nieuwerburgh.Conversions to multi-family aren’t the only option. Expanded mixed-use redevelopments fill the void for what people want and need as we transition into a new era. https://lnkd.in/gGBXNSEF

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Property values seen plunging 45% office usage is only about half what it was before the pandemic : Major investors have already begun defaulting on buildings : estimating almost $43 billion of offices are at risk of default : Values are expected to plunge 45% from the peak by the end of 2025 and take an additional 15 years or more to recover as hybrid and remote work reshape real estate “Demolitions and conversions of the worst assets may partially counteract the impact on valuation-based indices” “But ultimately landlords will have to bear those costs, so the road ahead for office owners is set to be an arduous one” Major institutional investors, including Brookfield and Blackstone have already defaulted on some office buildings, choosing to stop loan payments rather than spend more on money-losing properties : US Office Owners Get Dire Warning: Rebound Unlikely Before 2040

Here is our May newsletter. There are some interesting articles about the return to office: both hybrid and fully in-person, employee's opinions, and the struggle to fill office spaces.The Commercial Real Estate Loan Dilemma - May 2023 Newsletter | CrowdComfort https://bit.ly/3C2SEUP

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The commercial real estate apocalypse.... The key takeaway from the attached analysis is that remote work is shaping up to massively disrupt the value of commercial office real estate in the short and medium term.A calculation of reduction in value of the office stock between the end of 2019 and 2022 of $69.6 billion for NYC, $32.7 billion for San Francisco, and $5.1 billion for Charlotte. For the remaining office markets, the combined market-specific lease revenue declines with valuation ratio changes for NYC to compute the value decline. Nationwide, we find a $506.3 billion decline in office values in the three-year period.Is their a work around solution to this problem... thoughts?#realestate #commercialrealestate https://lnkd.in/g3cTszxV

Navigating the complexities of the challenging office real estate market is my expertise, as I assist clients day in and day out. I agree that this is a crucial moment for business leaders to proactively seize control of their real estate requirements.

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Well, it's been on 60 Minutes, so now everybody knows: the office real estate market is a mess, a train wreck in slow motion. We are helping clients to navigate this day in and day out, mark-to-market price discovery negotiations in a leasing market that is clouded with opacity and uncertainty. This is a critical time for business leaders to proactively take charge of their real estate needs. The role and independence of the tenant-side broker has never been more crucial than right now on large office leases.#cre #officespace #corporaterealestate #thiscycleneedsaname

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The challenging office real estate market is something I help clients navigate day in and day out. Couldn’t agree more that it’s a critical time for business leaders to proactively take charge of their real estate needs.

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Navigating the complexities of the challenging office real estate market is my expertise, as I assist clients day in and day out. I agree that this is a crucial moment for business leaders to proactively seize control of their real estate requirements.

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Navigating the complexities of the challenging office real estate market is my expertise, as I assist clients day in and day out. I agree that this is a crucial moment for business leaders to proactively seize control of their real estate requirements.

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