[Animats]

Update: 19% vacant, per NYT. 21% in downtown Manhattan.

"A third of leases at large Manhattan buildings will expire over the next three years, according to CBRE, a commercial real estate services company, and companies have made clear they will need significantly less space."

Yet there's still 14 million square feet of commercial space under construction.

Anyone need a spare skyscraper?

[SmellTheGlove]

I mean, NYC rents are still through the roof. They could build out housing in these tall empty spaces.

[jjeaff]

I think that it is actually quite expensive and time consuming to convert office space to residential. The main issue being plumbing. Most offices are setup to have a few restrooms and maybe a sink in each space for the break room.

It's a rather difficult problem when you go from 5 rarely used sinks on each floor to needing to supply water and waste drainage for maybe 50 sinks, 50 showers, 50 bathtubs, 50-100 toilets, 50 washing machines, etc, all on that same floor. Not to mention that you now have to figure out waste disposal because you will be creating way more garbage that is much smellier.

[omegaworks]

Sucks to suck. If any industry is lacking for capital to face a pivot it certainly isn't real estate. The interest rate is ridiculously low and no one seems to believe it will change.

[SmellTheGlove]

Oh I bet, but if the office space is becoming long term not useful, and people still pay a lot to live in NYC, it seems like there’s money in conversion.

That said I am the farthest thing from a real estate expert as you’ll get.

[foolinaround]

housing would follow the work places, and as they go, housing demand is not a given.

[SmellTheGlove]

I hear you, but it's NYC - rents are still high enough that I'm thinking demand for housing is there even if demand for office space isn't.

[giantg2]

That was my thought, but I'm guessing the retrofit would be really expensive.