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olli_bombastico t1_izfoxcc wrote

Reply to comment by atari_Pro in New York’s ‘zombie’ office towers teeter as interest rates rise by rootbeer_racinette

>Some obsolete office buildings may be converted to residential, which, in theory, would help to ease New York City’s chronic shortage of housing. But that is easier said than done, say many experts. It would require zoning changes. Even then, many office buildings may not be suitable candidates for residential conversions — either because their floor plates are too large, their elevators are wrongly situated, their windows do not open or their neighbourhoods are unappealing. To make such projects worthwhile, owners would have to sell at deep discounts.

They're not saying it's not a suitable alternative. They suggest there are many factors that owners need to consider before moving on with the projects. Why would they convert to residential buildings if there are no prospective tenants that can cover for their investment?

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atari_Pro t1_izfpzfo wrote

If current trends continue some of these bldg owners are going to take a loss. There’s not really a way around that. Commercial real estate in the city has been insanely inflated for a long time. Over valued vs residential by like 4:1 or more in some areas. So, why would they sell if they can’t cover? To cut their losses is why. Gotta stop the bleeding somehow. Just my speculation but any guess is as good.

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ehsurfskate t1_izhgq30 wrote

The thing to remember is they don’t need to stop the bleeding. They may be willing to wait a decade or more if they can borrow against the higher value of a commercial building.

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