Commercial real estate industry on edge as downtown empty office space goes unused

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Some financial analyst worry that the commercial real estate industry is in danger due to the increase of vacant office space with the rise of remote work.

people are returning to see the Minnesota Twins play ball, attend a concert or catch a Broadway show.

"As we sit here today, we're really beginning to move in a positive direction," Steve Cramer, president and CEO of the Minneapolis Downtown Council and Downtown Improvement District, said. "Like all downtowns, that pandemic hit like a ton of bricks and things really shut down. Then we of course, had the murder of George Floyd here in our city and that caused civil unrest here, and had implications around the country, around the globe.

Employees working in downtown Minneapolis use the skywalk to avoid the chilly weather. The Minneapolis Downtown Council says about 65% of people are coming into the office at least once a week, up from 50% in 2022."We have to focus some attention on what can a new life for those buildings be? Maybe they can be converted into residential units," Cramer said. "The newer buildings with amenities, I think are going to do just fine in attracting the office demand.

"People are working from home a lot more now. If they do want to go into the office, they're going to want somewhere nearby," Babula said about the decision to move to the suburbs where many employees tend to live. CBRE Global Commercial Real Estate Services says office vacancy rose during the 2008 financial crisis, but it was led by a recession. This rise is vacant office space is driven by a structural shift from the pandemic to remote work.

 

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and yet the office bldg where a friend rents a nice office is filling up!

'Commercial real estate' = 'Residential real estate' There is no difference. If one fails, they(banks) both fail. Displaying differences between the two shows that Fox Business is nervous. Rightfully so. If commercial keeps going down, residential will keep going down in value.

Luv it urban shit holes taking its toll on retail and now Commercial office space

Especially in ‘woke’, Democratically controlled cities.

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Unpacking the market's commercial real estate problemCommercial real estate, particularly the office sector, is slumping — and the regional banks that lend to the space aren't looking so hot either — leading to concerns about a 'doom loop.' Please hold untill the favored interests have sold out.
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