Nuclear_Elvis
Nov 1, 1:28 AM
$ABR This is not a problem specific to ABR, but if you haven't seen many Financial News shows highlighting the big changes in Real Estate and expecially in our largest cities - seek those out. Recent special aired and showed NYC as a brutal example, where Office REITs are hemorraghing because fewer people work physically in an office in NYC these days. High-rise office buildings in NYC are now selling for half their pre-COVID values. One that was highlighted on a show, the building was fully occupied, then COVID, telework, now only a single tenant (dollar-store) on the first floor. Owner was given a low-ball offer for
$40M on what was a nearly
$100M building. New owners gutting the entire thing, no more offices, only high-end residential units being built, and with some loophole for a center-of-building gap space that allows easier conversion (long story, you'd have to see the "unused space" in the center of the building, they're hiding unused space). We are fooling ourselves.
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