Can declining commercial real estate demand help address California’s housing crisis?


A decline in commercial real estate demand could represent an opportunity to reallocate portions toward more affordable housing in California.
The COVID-19 pandemic has led to an estimated 175,000 business closures this spring, and the delinquency rate on commercial-mortgage-backed-securities has increased more than fivefold in recent months.

According to a recent RAND survey, an estimated 40% of those remaining employed are working from home full-time, and employers are signaling that this may become the new normal.

All of this suggests a significant decline in commercial real estate demand. This could be regarded as yet another negative economic effect of the pandemic, but it could also represent a once-in-a-lifetime opportunity to reallocate portions of the built environment away from declining commercial demand and toward the urgent demand for affordable housing.

Attempts to "upzone" areas zoned for single-family use – a designation covering 75% of residential land in Los Angeles –  have repeatedly failed in the Legislature. One of the few bright spots in housing policy has been the city's 20-year-old "adaptive reuse" program, which played an important role in the creation of more than 14,000 new housing units in downtown Los Angeles, as well as in other parts of the city.

 



Sincerely 

Richard Murillo
Murillo Real Estate LLC.
(323) 209-8510 call or text 


The information contained in this message is proprietary and/or confidential. If you are not the intended recipient, please: (i) delete the message and all copies; (ii) do not disclose, distribute or use the message in any manner; and (iii) notify the sender immediately. In addition, please be aware that any message addressed to our domain is subject to archiving and review by persons other than the intended recipient. Thank you





Comments

Post a Comment

Popular posts from this blog

5 Considerations for Converting Office Buildings to Science Labs

Image
5 Considerations for Converting Office Buildings to Science Labs Office-to-lab conversions are a growing trend as businesses look for ways to reduce their carbon footprint and save money on energy costs. However, converting an office building into a science lab requires careful planning and attention to detail. Here are five key considerations for anyone considering an office-to-lab conversion: Building structure. The floor-to-ceiling height and column spacing in an office building must be sufficient to accommodate the equipment and furniture needed in a science lab. The building's structural capacity must also be able to support the weight of the equipment. Ventilation systems. Science labs require a higher level of ventilation than office buildings. The ventilation system must be able to remove fumes and contaminants from the air, and it must be designed to prevent the spread of fire. Electrical systems. Science labs require a significant amount of electrical power. The electrica...
Read more

Fwd: 15,794 SF sf of Warehouse BALTIMORE, MD

Image
Properties for Lease 1 2200 Van Deman St ,  Baltimore ,  MD   21224 Property Details Rental Rate Mo Upon Request Property Type Industrial Rentable Building Area 38,400 SF Year Built 2006 Status Active Property Notes Spaces # Space Avail. Rental Rate Min Divisible Max Contig. Lease Type Date Avail. Description Service Type   1st Floor 9,600 - 30,000 SF Upon Request 30,000 SF Relet 30 Days 2200 Van Deman Street is a 38,400 square foot industrial service building located within the Fort Holabird Industrial Park. The well-maintained property features nine (9) oversized drive-ins and a 28' ... Negotiable Property Description MacKenzie Commercial Real Estate is proud to present the opportunity to Lease 2200 Van Deman Street. This well-maintained Industrial Service Building is located within the Fort Holabird Industrial Park. The site features nine (9) oversized drive-ins and a 28' ± ceiling height. Two Former Crane Bays with existing crane rail infrastructure. This location is unbeat...
Read more

Fwd: 315 Cloverleaf Drive Unit C&D Baldwin Park CA

Image
-- Respectfully,  Richard Murillo Vice President Synergy Real Estate Group, Corporate Advisory Inc. Office:  (323) 285-0213   •  Fax:  (888) 979-6734   Mobile  (323) 209-8510 richardmurillo@synreg.com   •   www.synreg.com   CalBRE Salesperson: 02050954 Corporate CalBRE: 01911753 Synergy Real Estate Group, Corporate Advisory Completes 3 rd  NASA Lease for 11,000sf  Solar Sail Test Facility Synergy Real Estate Group, Corporate Advisory Helps NASA Hubble Lease New 120,000sf Headquarters . Synergy Real Estate Group, Corporate Advisory Assists Hitachi Lease New 12,000sf Ion Accelerator Test Facility Synergy is a tenant / buyer representation - corporate real estate advisory firm that exclusively represents medium sized companies and corporations for their real estate needs. A short list of our clients include CBS Studios, Tesla Motors, Hitachi, NASA, Cisco Systems, HP, ExxonMobil, DELL, Charles Schwab, Orrick Harrington, Farmers Insurance, Wabash Technologies (Mexico), TATA (India), Larsen ...
Read more