With the challenges facing commercial real estate lately. With the shift to remote work and the economic downturn, many businesses are struggling to maintain their office spaces.
It's not just offices either; retail spaces and hospitality properties are also facing difficulties. The pandemic has changed consumer behavior, leading to less foot traffic and lower demand for these types of properties.
I read an article recently that mentioned how landlords are facing increasing vacancies and downward pressure on rental prices. It's definitely a tough situation for those invested in commercial real estate.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
Recently, l've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but l'm not sure if their services would be all that helpful.
Turning commercial buildings into micro apartments would be next to impossible. Plumbing challenges would prevent any real potential. However, I will never put it past our government to spend massive amounts of money on a terrible idea. After all, the politicians need their kickbacks.
The worst time to buy residential property is tomorrow, then the day after that, then the day after that, etc :) Supply too low, demand too high, and few boomers want to sell their house given they’d need a loan or are locked in below 3%. The Fed and politicians have broken the real estate market. They want us to be 60% + renters like France, Germany, etc 😢
That's called a bank bailout and we have been doing that my whole life while at the same time removing rules so that the crashes happen more often now.
Hitting primarily a handful of cities in CRE ,San Francisco, Portland, Seattle are pretty much kaput in the downtown corridors,that is my observations after living in Seattle and bailing and visiting San Francisco and Portland.
I think the same thing that is happening for retail/office space will spill over to the apartment sector. In my city, there are loads of freshly built apartment blocks that are not even 1/4 occupied. Yet, the rent for apartments seem to keep going up but the capacity/empty apartments keep increasing due to continued aimless development. I do not know how the owners of these apartment complexes stay in business.
I am seeing the same thing. Tons of new apartments going up and no one living in them. I suspect they are anticipating a bunch of people losing their homes to foreclosures and the younger generation not being able to afford a home so apartment life will sore. Some of these apartments are really ugly too. They look like the projects or a prison. My town has strict building codes that require certain amounts of decorative Rick and beautification.. even on the new McDonalds and the storage units. 😂 But it does look nice and limits cheap builders from coming in and putting up ugly buildings.
Glad I focused on paying my place off and not just RRSPs. I've lived in a 100 year old house and have renovated multiple times but never upgraded as the costs are rediculous at these interest rate.
Homes over the last 3 years have Doubled or in some Markets have even Tripled in Price . While the average pay due to Inflation has actually fallen . Not a recipe for a booming Housing Market .
As long as the residential real estate market stays relatively strong,the banks foreclosing on homes will almost always always get well thru the sheriff sales making the process lucrative for banks. During the 2007 forclosure pandemic banks were so shocked they just game them away .i know, my team purchased almost 100 free standing homes in my small town America during that period investors right now are keeping the prices really high. Thanks this post hope shed some light on this turn down in the economy
I bought my house in 2021 with a 2.75% rate 🟰 I WILL NEVER SELL. I don’t care what’s going on with the market. I just sympathize for my family & friends who cannot afford to buy. 😔
@@TheRealLivingWithLisathat’s assuming the Fed will do the right thing and not debase the currency, where is the evidence of that? They will not raise rates and cut entitlements, they will keep printing money
If taxes and home insurance is 1000% higher wouldn’t that make rents then and other homes even 3000% higher. She would still be better off not selling with such a low rate.
Also I'd like to add, these companies may also have investments in REITs which is what's artificially keeping real estate prices inflated. If they need to make payments, where's the first place they're going to pull money from...?
You're absolutely right! I was wondering about this topic and noticing that so many businesses are moving to more of an online presence because of the huge expenses incurred from having brick and mortar locations - hiring employees, maintenance, etc... It's so cost prohibitive. More and more people are staying home and using delivery services. The only industry that seems to be growing is UPS, USPS, and FEDEX. I hope one of these crashes trickles over to the interest rates for home purchases so that more individuals can buy residential properties. - I don't agree with micro-apartments for so many reasons. Plumbing, electrical, would be a nightmare, parking, overcrowding, infestations of rodents and insects. Oh boy...
Lisa….we have a new subdivision going in near our home of 100 plus homesites (single family & townhomes). All of these homes are being built by a large corporation to be only rental properties. What do you think that will do to home values in the area?
From the WSJ......The Office Market Is in Turmoil. So Why Are Rents More Expensive? U.S. office rents are holding steady-or even climbing-despite soaring vacancy rates, a record amount of available sublease space, and rising defaults.
......well on the residential housing market...there's a joker in the deck.😮😮....that joker is a substantial increase in the unemployment rate....with inflation hammering away monthly...well people are tightening their belts...if many business sales slow...and they decide to increase layoffs this could trigger a much larger recession...with many job losses...all bets are off on the residential housing market....nice video and thanks for sharing.
Daniel, many are saying that we will have a collapse of the financial system. Especially, when the Federal Bank keeps 'printing' 1 Trillion dollars every 100 days !!! No way we can balance that amount of debt.what choices do we have, 1) World-wide depression, 2) World War 3, or 3) WEF's Build Back Better !!! Not much of a choice.
Young people. But it will also cause a fall in regular apartment prices which will bring in more families with kids and increase school population. Which will freak out the NIMBY's because they don't want apartment dwelling kids going to their schools.
Thank you for another Terrific Video , Lisa !....Employment ( or lack thereof ) , will be a Huge Factor in the pricing mechanism of All Things ( including housing ).......The price discovery of most markets are distorted by 2+ sigma....reversion to the mean...will be very Painful.....It's All going to workout over Time , but it's Not going to be Fun !!.....I enjoyed our conversation , please pat Truman for me......Take Care...
Great contet as usual! Congratulations Lisa. I seems to be a worldwide plan because as far as know the same is happening in Brazil (where I live) and also in Europe... Perhaps, or maybe, there is someone working hard to make real state value to go down intending to acquire proprerties for a bargain? Oh no, certainly nbot, it would be so cruel to be true...
Thank you very much. I DO think there are entities working behind the scenes to dissolve personal property rights, the commercial space could be a stepping stone on that path. Thank you for your comments... ❤
Our country is 34 trillion in debt. The day is coming to pay the piper. What will be the black swan event? Maybe the commercial real estate. Enjoy your day. Love watching your show. You make laugh. Sometimes
I try not to stress,yes, how to stay sane in these insane times. I live in Tradition, tried the RE thing,had to go back to being a RN, oh how I wish it had worked out, but you never know. 🤷♀️ Trump 2024
I see how repurposing these office buildings can serve as solutions to affordable housing as well as conform to the UNs goals of Chinas lookalike housing market, packing people into smaller urban spaces where they can be more easily surveiled and controlled.
@@TheRealLivingWithLisa Brandon can’t even take care of Corn Pop. I’d not prefer to leave SW FL, but my house ins. is killing me. I’m not looking to hit the jackpot. I just wanna wait until the “crash” to make any moves. Once it settles down, the sellers and buyers can make better decisions without getting ripped even more by the bankers and ins./real estate agents in the midst of chaos.
