https://fortune.com/2024/02/25/office-commercial-real-estate-crisis-doom-loop-conversion-housing-subsidies-demolition/

“At the end of the day, I think the problem is that we have too much office relative to our future needs, and a lot of places have too little housing. So I think one way or another, we’re going to have to turn some of that office space into apartments,” said Van Nieuwerburgh. “That might have to partially happen through demolition. But it would be nice if we could have at least some of it through conversion. It’s sort of the environmentally friendly way to go.”

  • nat_turner_overdrive [he/him]@hexbear.net
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    8 months ago

    “[We used to be involved with] conversions that cost $75 to $150 a foot. Now, the market rate is $350. For high-end luxury, it’s $450. The economic model is very challenging for conversion,” said Cordova. “The way to do it is for governments to provide subsidies for conversion…the government needs to provide about a 20% cost subsidy.”

    The standard liberal solution - means tested handouts to business owners who are already rich with the cover story of “helping” poor people by subsidizing housing construction that will target luxury buyers/renters and will gouge the shit out of everybody in the process.