If landlords can’t pay back loans on office buildings, the lenders will suffer. Some banks are trying to avoid that fate.
Hard times are likely ahead for a lot of people. Mind your expenses and plan to save where possible just in case. Apologies for having a doomer outlook; I’m very cynical about capitalism, especially in the USA.
Not sure why creating very affordable housing for extremely low income/homeless, that share a communal bathroom/kitchen on each floor would be such a hard sell? Hostel mentality? Feels like there’s still room for at least one in every major city.
Not a solution for all commercial real estate obviously.
What if you have one resident per floor?
I know that’s it’s not efficient, but investors would just have to swallow those costs given their bad investment decision.
They called them “apodments” there for a bit, but “dormitory” is probably a more accurate term. Small 300sqft rooms, sometimes with a small kitchenette but generally shared kitchen/baths on each floor.
The gimmick is that they were “cheaper” than full apartments for people that just need to sleep somewhere and then leave, but I think they fell out of vogue with luxury apartments taking over instead.
On the plus side for conversions, old 70s era and early office building apprently convert pretty well to residential before they are a ways overbuilt for office space compared to more modern buildings. Likely thousands of possible units in most cities.
