The slowly deflating #CommercialRealEstate bubble continues. People are just not that interested to go back to the office.
This building in a suburban #SanJose office park was occupied by Nio, the Chinese carmaker, who did not renew their lease in October 2023. Without a new tenant, the building went into foreclosure with $25M of outstanding debt.
The slow collapse of downtown commercial real estate is continuing. I suspect news like this, and stories about the decline of retail around downtowns that depend on daily commuter traffic will come in at faster and faster rates.
Workers are not returning to the office to work. #RemoteWork and #flexibleWork are showing to be a perfectly viable solution that is more friendly to workers. Even with hybrid work, the volume of people commuting is far lower than it used to be.
#CBRE is slowly declining to a new, lower-value equilibrium.
“Once-hot tech office in SF's SoMa sells for a fourth of its 2019 price”