Real Estate Crash thread

[sirbumpsalot]

Bit overpriced.

https://pexp.housecanary.com/shared-...d82140cc2a981a

over 700 acres no?

[Toadman]

yep, Mall owners have been struggling for years even before the pandemic. They thought they could be bailed out by turning the empty big box stores (Macys, JC Penny, etc) into Amazon/Target fullfillment wharehouses but that market is crashing too. What will happen, IMO, is the malls will turn into big mixed use developments, and its up to the mall owners if they want to play developer or sell to a developer.

Hey, turn those malls into affordable housing!

[californiagrown]

Hey, turn those malls into affordable housing!

The developments ive seen have limited affordable units, just enough to hit the number mandated by code. The developer typically shoots for a more high-end clientele with the residential and retail tenants.
Residents requiring affordable housing arent typcailly going to support the retail tenants in their development to nearly the same level as market rate residential would. Though, mandating a higher percentage of affordable housing in those developments would be a good idea for sure. These malls are in well thought out high traffic areas, typically with good access to public transportation so they are really ripe for high density residential redevelopment.

[mcphee]

Hey, turn those malls into affordable housing!

Most likely to become storage facilities to store all the unused items they bought at that mall. Full circle! Yay!

[mud]

over 700 acres no?

Hudge tracts of land are always appreciated.

[ötzi]

[jackstraw]

Most likely to become storage facilities to store all the unused items they bought at that mall. Full circle! Yay!

At what point in the future are those going to come crashing down? I cannot believe how many new ones have gone up around here in high rent districts. One day people will wake up and say wtf am I doing pissing $$ away storing all this shit I don't use.

[Ted Striker]

I'm guessing never. When we had our little development company, I really wanted to build or buy and operate a self storage (mostly because my brothers and I had a lot of junk, and wanted to put a big shop on it).

We looked at two on Loopnet - one local, and one just down the road. Both had stupid asking prices, which I assumed were based on land development potential. Then I saw their books. Year over year occupancy in the high 90%s, low operating costs, and despite what "reality" TV would lead one to believe, surprisingly few defaults.

Exxon stock is at $105 today. Apple is $184. Public Storage is $285. Because storage is where you put stuff that's already paid for, so you can continue to pay many multiples, over many years, so that your heirs can have the pleasure of taking it to the dump.

[skaredshtles]

<snip>Because storage is where you put stuff that's already paid for, so you can continue to pay many multiples, over many years, so that your heirs can have the pleasure of taking it to the dump.

And I'd wager this is *exactly* how most of it goes. People are weird...

[Ted Striker]

It gets worse. When my grandfather died and we cleaned his house out to sell it, we sorted everything into keep, give away, and garbage categories. Guess what my parents did with the "keep"...

[skaredshtles]

It gets worse. When my grandfather died and we cleaned his house out to sell it, we sorted everything into keep, give away, and garbage categories. Guess what my parents did with the "keep"...

[Tips^Up]

"How to Get Rich," Ramit Sethi's netflix show, has a revealing experience with a couple and their storage unit. They spend $100/mo on the storage unit (or whatever it was). It stores things like a microwave they're hoping to sell for $50. So if they keep the storage unit for 1 year for worthless junk, the microwave is worth -$1150, not $50.

[mud]

My Mom and Dad have been living in the same house since 1963 after leaving Detroit and they are both the sentimental/nostalgic type and a little hordy. I've helped keep the home presentable to outsiders but in Florida they have these outdoor utility rooms instead of basements or garages. They have two rooms, one for Mom where the electric panel lives and has been kept clean and one for Dad, I've cleaned Mom's out several times over the years but Dad's was packed floor to ceiling back in 1984 and I've honestly been to scared to open it since then. I'm heading over later today, maybe have to unseal that crypt eventually.

[yeahman]

Tech, an Early Booster of Remote Work, Wants People Back in the Office

Google, which requires most workers to be in the office three days a week, sent a companywide email last week telling workers that office attendance would begin to factor into performance reviews. The company also told employees that teams would be sending emails to those who are consistently absent and it would encourage remote employees who live near an office to consider switching to a hybrid schedule. “Our offices are where you’ll be most connected to Google’s community,” the email said. “Going forward, we’ll consider new remote work requests by exception only.”

[4matic]

History rhymes:

S&L crisis 1990

S&Ls also began investing in riskier commercial real estate and even riskier junk bonds. This strategy of investing in riskier and riskier projects and instruments assumed that they would pay off in higher returns. Of course, if those returns didn’t materialize, it would be taxpayers [through the Federal Savings and Loan Insurance Corporation (FSLIC)]—not the banks or S&Ls officials—who would be left holding the bag. That's exactly what eventually happened.

I remember all the empty half finished commercial buildings. It seemed dire then but cheap gas and the internet eventually got things going again.

The way crude oil is trading it could happen again. 3 years ago you couldn’t give oil away.

[neckdeep]

Because storage is where you put stuff that's already paid for, so you can continue to pay many multiples, over many years, so that your heirs can have the pleasure of taking it to the dump.

The more things you own, the more those things own you.

[XXX-er]

I talked to a guy who had a bunch of toys mostly motorized and the money he spent just on insurance every year was > the cost of all my skis bikes kayaks at the time

I have way too many skis that I should get rid of but they are not worth anything

[mud]

The more things you own, the more those things own you.

No, that's marriage, toys are upgradable and improve your life.

[Foggy_Goggles]

...around here at least, there is a definite trend to purchase a smaller home (condo generally) and rent storage for the snowmobiles, boats, off season items etc). It is also done to maintain HOA compliance.

Commercial/Industrial space is so scarce that many contractors and such need storage facilities for their business.

Sent from my Turbo 850 Flatbrimed Highhorse

[Toadman]

...around here at least, there is a definite trend to purchase a smaller home (condo generally) and rent storage for the snowmobiles, boats, off season items etc). It is also done to maintain HOA compliance.

Commercial/Industrial space is so scarce that many contractors and such need storage facilities for their business.

Sent from my Turbo 850 Flatbrimed Highhorse

Same - A lot of storage units in Bend. They keep adding supply, because people keep moving here with all the stuff that includes stuff in storage when they moved. So, they just move it into a new storage unit when they get here. Kind of crazy. We rented one for about 18 months when we were living in a tiny rental house. It was tough finding any place that had a storage unit available. $100/month for the unit. Mostly some oddball sporting goods, furniture and old dinnerware from a great grandmother that has more sentimental value than real value.

[XXX-er]

I met a married couple a year ago at the bike area who were scoping out places to move and then this year they moved

they decided " hey we are from auz and Canada so what the fuck are we doing in America ?

so they sold their house tripling their money, loaded up the sprinter van and headed narth

so far the only thing they miss is the instant mail order & courier services

[east or bust]

Tech, an Early Booster of Remote Work, Wants People Back in the Office

It might take another 5, 10 years but I think in the long term the vast majority of jobs are going to get pulled back into the office. "The Man" is catching on to the fact that people simply are not as productive for the company while working remote as in the the office. Sure, you might be getting your work done remotely, but if you get it done in 5 hours and fuck around for the other 3 the employer is ultimately losing money on that deal.

[summit]

It might take another 5, 10 years but I think in the long term the vast majority of jobs are going to get pulled back into the office. "The Man" is catching on to the fact that people simply are not as productive for the company while working remote as in the the office. Sure, you might be getting your work done remotely, but if you get it done in 5 hours and fuck around for the other 3 the employer is ultimately losing money on that deal.

Being in the office doesn't mean you are productive...

[east or bust]

Being in the office doesn't mean you are productive...

True, but that ultimately falls on the manager, who can then be held more accountable by upper management for their employees in the office who they supervise all day vs their remote worker who lives in their van on the beach in San Diego and "works" 8 hours a day but actually surfs for 4 of them.

[Ted Striker]

The more things you own, the more those things own you.

It's only after we've lost everything that we're free to do anything.