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San Francisco braces for commercial real estate crash

sfstandard.com

121–130 of 622 posts

Re: San Francisco braces for commercial real estate crash

#121
post #85

Earlier quoted context omitted.

Why "wasted" ? Does everyone need to live with the least amount of space possible?

They don't. But if you want only detached single family homes you don't get to complain about prices.

Those with the homes are not the ones complaining.

Re: San Francisco braces for commercial real estate crash

#122

Earlier quoted context omitted.

The businesses literally shut down because of that? They were that stubborn? Or they noticed it too late?

The one I was most familiar with was a business that edited wedding photos and videos. The owner insisted that each employee be on site each day. There were other factors too such as the fact that he forced them to work on Windows machines when each employee had M1 Macs at home. He made the fatal mistake of saying “if you don’t like it, go start your own business.” Well, two of them did. My wife and I gave them the m…

How can you be sure that the business itself didn't fail?

Re: San Francisco braces for commercial real estate crash

#123
post #79
post #32

Earlier quoted context omitted.

But that is also key to the problem: the cost to convert these buildings is already prohibitively expensive, and converting them into dormitories cannot possibly recoup the cost. It's like how sometimes it just doesn't make sense to refactor code because it is fundamentally designed for a different purpose. Sure you can grind it out but will it be any better or cheaper than starting fresh?

I mean, SF residential prices are still super high, it seems like it oughta pencil out.

I think flooding the market in new living spaces would decrease demand, leading to lower rent.

Re: San Francisco braces for commercial real estate crash

#124
post #85

Earlier quoted context omitted.

Why "wasted" ? Does everyone need to live with the least amount of space possible?

They don't. But if you want only detached single family homes you don't get to complain about prices.

> if you want only detached single family homes you don't get to complain about prices

Or about a collapsing tax base when stuff like a commercial real estate collapse occur.

Re: San Francisco braces for commercial real estate crash

#125
post #92

Earlier quoted context omitted.

> Maybe X should relax the legal requirements of Y That's a slippery slope. Lots of legal requirements exist to protect someone. Legal requirements for windows are pretty reasonable to ensure people have at least some bare minimum of access to natural light in their home, rather than just living in a box.

Seems to me like lots of people in SF would rather live in an indoor box than an outdoor box. Why not let those without homes choose if they are willing to take the risks associated with ignoring those rules over l king on the streets?

> Why not let those without homes choose if they are willing to take the risks associated with ignoring those rules over l king on the streets?

I'd rather have a government that enforces a high quality of life.

Re: San Francisco braces for commercial real estate crash

#126

Earlier quoted context omitted.

I’m not near a big tech center, but I know of exactly 3 businesses in my town that no longer exist because they would not allow their employees to work remotely. Two of them were owned by former clients of mine. They allowed themselves to fail because they wanted to make their employees’ lives more difficult. It was that simple. There was no need for either business to have a brick and mortar location at all. No need…

We as an industry are still sailing through the air thinking things are fine with WFH, but in reality the engines have stalled and we're gliding. What I mean by that is that the industry has all the benefits of in-person work, having social connections, having gotten jobs through networking, and of knowing the ins and outs of a domain from pre-covid standards. As time goes on, I think the working population will have…

I also think there are a lot of people in California who don't want to RTO who aren't thinking about competing with jobs with people in a state with COL like Arkansas or Idaho. WFH is really going to depress wages for most tech workers.

Re: San Francisco braces for commercial real estate crash

#127
The city officials are asleep at the wheel. Blame it on remote work and pandemic as much as you want, but the reality is that the city was in decline even before that.

It is too expensive to live in the city.

It is too expensive to commute to the city.

It is too expensive to feed yourself in the city.

Crime is rampant. Drug use and filth is everywhere.

Most importantly city has been hostile to tech and business owners.

None of this makes it lucrative for individuals and businesses to go there, which creates this feedback loop that makes it even worse for few that want to.

Re: San Francisco braces for commercial real estate crash

#129
post #19

Earlier quoted context omitted.

Maybe SF should relax the legal requirements of residential space, then? If they choose not to build sufficient housing... they can at least choose to use what they have. A windowless room with a community bathroom doesn't sound appealing, but at a certain price point it's better than nothing.

> Maybe X should relax the legal requirements of Y That's a slippery slope. Lots of legal requirements exist to protect someone. Legal requirements for windows are pretty reasonable to ensure people have at least some bare minimum of access to natural light in their home, rather than just living in a box.

> Lots of legal requirements exist to protect someone

That someone is often the homeowners [1].

[1] https://www.nytimes.com/interactive/2016/05/19/upshot/forty-...

Re: San Francisco braces for commercial real estate crash

#130

Earlier quoted context omitted.

Sublime. All of the people who hated working in an open office are screaming at the idea of living in one.

I am very over getting together in people’s open plan kitchen + living/family/dining room homes and being unable to have a conversation because 10 people’s voices are bouncing around one room with 10ft ceilings when there is enough space for 2 or even 3 separate rooms. And the TV volume is on for some reason. And the exhaust above the stove is on. And the kitchen faucet is running.

A lot of those conversations could have been just an email.
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