With banks increasingly realizing potential losses on office loans, there's a looming possibility of a major repricing event, potentially leading to the demolition of many underutilized office buildings. Amidst this scenario, there lies an opportunity for the strategic conversion of select properties into residential spaces, which can present a promising avenue for urban revitalization.
"Yet the harsh reality remains – many structures simply lack the structural feasibility for cost-effective conversion," Gregor Watson, Co-Founder of 1Sharpe Capital, tells GlobeSt.com.
"Where a realistic path for such conversions exists, there will be substantial financial commitments required, so it becomes imperative to foster collaborations between government entities and private stakeholders," Watson said.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
