Then he should act like any other office building owner and rent some space to other companies.
Bonus points if he gets with the future and works to convert some of the building to living space so people don’t have to travel to get to work. Not everybody will want that, but it will appeal to enough to make it worth doing. Shopping malls across the country are being converted to such hybrid spaces so most everything one needs is within a convenient distance.
Bold of you to assume he already doesn’t. But WFH across many industries drives down urban office space value overall.
I edited the comment to expand more clearly upon what I mean. There are other ways to capitalize on the space.
Converting office space to residential is costly (if even possible for a given building), and would require a lot of effort. There may be zoning issues in the way as well.
Much easier to just use the CEO hat to keep desks full, and the landlord hat to collect rent.
Then he should act like any other office building owner and rent some space to other companies.
There are more buildings/office spaces to rent than people wanting office space these days. There are LOTS of empty unrented buildings. He would have difficulty even finding a tenant.
Bonus points if he gets with the future and works to convert some of the building to living space so people don’t have to travel to get to work.
An exceptionally small number (we’re talking single digits in the world) of Class A office buildings are good candidates for this, and these are typically done with grants/subsidies from state or local governments. These are only in the most lucrative geographic locations where housing is at an absolute premium regardless of the cost.
For good value of converting office space look at Class C buildings. These are typically older and smaller office buildings (think built in 1910s-1950s). In these, there are ways to make cost effective residential conversions and these are happening by the dozen now.
The class B pic shown in your link would be a perfect candidate to retrofit to housing if it’s unrented. The classifications you’re showing are classes of rentals, not building construction.
The class B pic shown in your link would be a perfect candidate to retrofit to housing if it’s unrented.
According to the architectural studies I’ve read when I looked into this question for myself, you would be incorrect. Open floor plans are apparently pretty horrible for residential conversions. Many residential building codes require each bedroom to have a window with a screen for ventilation. Now look at that picture of the Class B. The only exposed areas that could have a window with a screen would be on the perimeter. Further, codes many have rules that say that you cannot have one bedroom accessible by passing through another, so that would exclude long skinny apartments unless the are a 1 BR. That would leave lots of square footage trapped in the middle unusable for bedrooms. Could you put windowless living rooms and kitchens there? Sure, but even then its very few residences when they could knock that building down and get many more windowed rooms on the same piece of land.
Class C’s don’t have these issues as they were built with small individual offices in mind and not open floorplans, which make for affordable cost effective conversion to residences.
The classifications you’re showing are classes of rentals, not building construction.
I’m no building expert, but I am not aware of a difference in “class of rental” vs “building construction” you’re making the distinction of. The studies I read only referred to them by class letter and never mentioned any distinction that you’re referring to.
