The Reagan White House moved to lower tax rates for developers in the 1980s and then years of low interest rates glutted downtowns with office buildings. Time's up.
For the millionth time it’s not that simple. Retrofitting commercial buildings is often impossible or more expensive than just demolishing and building new which is also ungodly expensive especially with how high interest rates are right now. Unless cities step in with millions of dollars per project it’s usually not financially possible.
I live on the North end of the SF Bay Area and literally every empty lot and a shit load of pasture land and open space is currently being developed into either low income apartments, high end apartments, town houses or track homes. It’s honestly kind of shocking. Everywhere you go, new residential development.
Sonoma County supervisors were supposed to vote on a housing development plan in January, but failed to do so until August, and in the meantime there was a special rule that allowed builders to go ahead without most of the red tape they usually face. They took the opportunity and ran with it.
Actually it’s not bullshit. Most office buildings are designed with large core space where the elevators and stairs etc go. That’s not at all how apartment buildings are designed. Changing that is extremely expensive.
Say you have an average size house, with a 2-car garage on the side. You decide to change that garage into a small apartment for renting. You need to add a wall or two, add insulation, build up a kitchen area (with proper water and power) and a bathroom.
Imagine how much that would cost you for that single apartment. Now multiply that by, say, 50, to convert a large office building into 50 residential rental units. Even with economies of scale, that’s still going to cost millions…
Dude… you’re arguing that it’s better to tear down, and build from scratch then it is to retro fit. This is obvious bullshit. In your example it would be more practical to retro fit the garage then to tear it down, and build a new building. Like fuck man.
For the millionth time it’s not that simple. Retrofitting commercial buildings is often impossible or more expensive than just demolishing and building new which is also ungodly expensive especially with how high interest rates are right now. Unless cities step in with millions of dollars per project it’s usually not financially possible.
I live on the North end of the SF Bay Area and literally every empty lot and a shit load of pasture land and open space is currently being developed into either low income apartments, high end apartments, town houses or track homes. It’s honestly kind of shocking. Everywhere you go, new residential development.
Sonoma County supervisors were supposed to vote on a housing development plan in January, but failed to do so until August, and in the meantime there was a special rule that allowed builders to go ahead without most of the red tape they usually face. They took the opportunity and ran with it.
That sounds like a “them” problem.
They can watch their investments dry up and lose billions, or pivot to the new market. Not our fault they’re stuck in the 80s.
This is such bullshit. It doesn’t cost millions of dollars to add new plumbing, HVAC, and interior walls.
Actually it’s not bullshit. Most office buildings are designed with large core space where the elevators and stairs etc go. That’s not at all how apartment buildings are designed. Changing that is extremely expensive.
Say you have an average size house, with a 2-car garage on the side. You decide to change that garage into a small apartment for renting. You need to add a wall or two, add insulation, build up a kitchen area (with proper water and power) and a bathroom.
Imagine how much that would cost you for that single apartment. Now multiply that by, say, 50, to convert a large office building into 50 residential rental units. Even with economies of scale, that’s still going to cost millions…
Dude… you’re arguing that it’s better to tear down, and build from scratch then it is to retro fit. This is obvious bullshit. In your example it would be more practical to retro fit the garage then to tear it down, and build a new building. Like fuck man.
https://www.nbcnews.com/business/real-estate/why-empty-offices-aren-t-being-turned-housing-despite-lengthy-n1274810
“ In parts of the country where land is relatively cheap, it’s far less expensive to build housing from scratch than to convert old offices.”