If they are willing to hold that real estate for a couple decades until the people return.
Of course, there are a lot of US cities that were once great and now are shitholes.
Baltimore and Detroit are two that come to mind. Will some of the others follow suit.
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This reminds me of the commercial real estate market in New York because most of the mortgages and loans are signed by a group of debtors. They prefer to have a building empty than to decrease rent because it would mean they have to get approval of all the loaners.
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From what I read is that companies are not defaulting on their rents but the sublet market is seeing a huge amount of volume put up.
That means companies are still paying yet they are not using the space. We are about 14 months into this thing. Since companies operate, typically, on 5 year leases, that means 20% of the space will come up on average a year. I wonder how many are starting to really buy into the idea and just giving up the space or downsizing?
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Yea downsizing seems like the best option and then buy back in when it is cheaper.
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