Is this the real reason for forcing RTO?
https://twitter.com/realEstateTrent/status/1614986890398109697? From the tweets: Office building: 100k square feet Purchase Price: $100M Rent: $8M (gross) Year: 2019 Now half vacant Rent: $4M/yr Cost to operate: $2.4M/yr Interest on loan: $3M/yr Owner losing $1.4M/year, $40M down payment wiped out, and no tenant interest Happening all over the country
REITs gonna go down but not sure if tax will go down. Ppl will find a way to renovate office space to living space and sell it to young ppl for millions
The real estate that will free up should be used by a City for some other purpose. There has to be a better solution than RTO. Might not be that profitable but better than no profit.
SF business people and commercial real estate people were pushing this since late 2020
Filling it with people does not make the rent go down. So no.
Why would other companies care?
This is one of many ticking time bombs. It gets worse once you realize the percentage of major US city budget comes from commercial real estate property taxes.