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pigsgetfathogsdie t1_je2u792 wrote

Every service company I know downsized their real estate commitment during the pandemic…

And quickly realized it saved lots of money…and maintained productivity.

None of these companies can bring all their workers back to the office on a full time basis.

All these companies are adopting a 2-day a week in-office rotation.

  • Employees are happy keeping 3 days work-from-home.
  • Companies are happy with the savings.

The new normal.

Commercial Real Estate is fukked.

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Meltman1223 t1_je4ddin wrote

I’m a commercial contractor that specialized in large corporate office and call center construction pre pandemic. Haven’t built a pure office since 2019, the last one I built I’m about to gut back to a warehouse 4 years later. When people say “commercial real estate is dead” they actually mean corporate office. Warehouse/flex/production space is booming in my are, especially small and medium size spaces. In my area shithole 10k SF warehouses are commanding higher rent than class a office. We are tearing out $50/sf buildouts to make more warehouse space because the rent justifies it. Any office building with the bones to go to warehouse is an investment opportunity.

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pigsgetfathogsdie t1_je53lwp wrote

Great insight…

My comment was just observations…I’m definitely not a Real Estate expert.

What public Commercial Real Estate companies specialize in the hot Warehouse/Flex Production space?

They may be trading at a deep discount.

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meltbox t1_je8s4v3 wrote

On the flipside, not in that area, but I am seeing most logistic centers hold off on opening new warehouses. The demand seems to have slowed down vs the blistering pace of expansion during covid.

Not sure if its a temporary pause due to companies being cautious or something that will hold.

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