I wonder how this compares to other cities globally
This article does this exact type of # of notable building's worth of empty space for other US cities: https://www.nytimes.com/interactive/2023/05/10/opinion/nyc-o...
17.1 Salesforce Towers worth of empty office space spread across SF
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Re: 17.1 Salesforce Towers worth of empty office space spread across SF
#72Earlier quoted context omitted.
"Cities" is the wrong word here, it's really "downtown" or "city center" areas. The center of activities will move outwards toward the suburbs, but stay in the wider metro area. This has been slowly happening for a while in many (most ?) metro areas, but the pandemic will certainly expedite things.
Until the ponzi scheme that is suburbia bankrupts the city
I read an article a few years ago that showed that cities make the most money off of the poorest areas because they are the densest.
It turns out the French had it more right when they levied taxes based upon Street front length instead of area.
The length of the road, sidewalk, street lighting, water pipe, electrical lines, telephone lines, etc. are all increased with wide properties. Perversely, the wealthier homeowner is subsidized by the poorer apartment dweller.
Re: 17.1 Salesforce Towers worth of empty office space spread across SF
#73US cities are going to be in a world of hurt here pretty soon. Cities exist as job markets. And the primary force that keeps urban areas safe and friendly is the shoeleather of middle class workers coming in and out of work each day. The vacuum left has been filled with homelessness and poverty. These people were always here, but there was enough critical mass that they were at the margins. Now they are at all of the…
American cities are huge money laundering fronts using real estate. https://www.fincen.gov/resources/advisories/fincen-advisory-... Criminals can use all-cash purchases to make payments in full for properties and evade scrutiny—on themselves and the origin of their wealth—that is regularly performed by financial institutions in transactions involving mortgages.9 All-cash transactions account for nearly one in four re…
Shades of Tommy Wiseau.
Re: 17.1 Salesforce Towers worth of empty office space spread across SF
#74Earlier quoted context omitted.
As long as we're using our imaginations, I'm genuinely curious how much NIMBYism would come into play when trying to retool downtown into primarily residential towers. Historically it's been a huge issue in other neighborhoods, where current homeowners are loath to approve more housing since it would drag down their property values. But I have to imagine that SF's downtown has drastically fewer homeowners per-square-…
> Actually, who am I kidding- some other interest group would probably take their place. This is it unfortunately. After observing the SF NIMBY mentality for many, many years, you start to see the matrix. It has nothing to do with gentrification, inclusion, environmentalism, or any of the other purported values. It's about one thing: stasis. Keeping SF the same at all costs, and making sure no new people come here. S…
> Keeping SF the same at all costs, and making sure no new people come here.
Applies to Seattle as well
Re: 17.1 Salesforce Towers worth of empty office space spread across SF
#75Earlier quoted context omitted.
Owners are not able to cut rent as most commercial financing have covenants which require a minimum lease rate/sq foot. If they cut rent, they could be in technical default and lose the building. Commercial financing has onerous terms which should be stricken by the government/courts.
They're going to lose the buildings eventually when the loans need to be refinanced at much higher interest rates while commanding much lower rents.
This is my take too. The strictness of the tenant rent requirements seem like a "bug" in the lease agreement.
In a situation like this where there's a massive downturn in office rental value and not much expectation it'll lift any time soon, it seems in both parties benefit by allowing lower rents. Locking commercial tenants in 5-10 year leases at current market rates will probably mean the building owner defaults on their debt, but that seems inevitable.