this post was submitted on 24 Dec 2023
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With almost 30% of downtown LA office space available for lease or sublease, the value of the 62-story Aon Center plummeted.

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[–] Hyperreality@kbin.social 20 points 10 months ago (1 children)

The whole commercial market has been inflated for decades. Not just offices but shops too. Companies who refuse to lower rents, because it would lower the value of their property, despite it being empty for months or even years.

It'll be interesting to see if it finally crashes.

I do hope they don't simply deregulate and turn these properties into overpriced housing. They're often unsuitable for that purpose.

[–] BeefPiano@lemmy.world 6 points 10 months ago

Part of the problem is that their mortgage usually sets a minimum price per square foot. That means that if the market crashes, the landlords can’t lease for market price without getting their investors to approve. That’s part of the reason why there’s so much empty space, because prices haven’t come down much.