04-15-2020, 01:32 PM
The CRE industry is in a world of hurt. Office buildings face a perfect storm for disaster:
- People being forced to stay home from work
- Whole companies having experience with their workforce working from home all at once
- Companies in need to cut expenses in pandemic aftermath
This could actually be a boon for the housing crises. So many buildings are going to be unable to lease their space that they are going to have no choice but to start converting to residential space that isn't as lucrative and will require investments in conversion. And CRE mortgages are based on valuations assuming commercial leasing tenants.
The world is transforming before our eyes.
- People being forced to stay home from work
- Whole companies having experience with their workforce working from home all at once
- Companies in need to cut expenses in pandemic aftermath
This could actually be a boon for the housing crises. So many buildings are going to be unable to lease their space that they are going to have no choice but to start converting to residential space that isn't as lucrative and will require investments in conversion. And CRE mortgages are based on valuations assuming commercial leasing tenants.
The world is transforming before our eyes.