Fuck_You_Downvote

Fuck_You_Downvote t1_izehax8 wrote

Some obsolete office buildings may be converted to residential, which, in theory, would help to ease New York City’s chronic shortage of housing. But that is easier said than done, say many experts. It would require zoning changes. Even then, many office buildings may not be suitable candidates for residential conversions — either because their floor plates are too large, their elevators are wrongly situated, their windows do not open or their neighbourhoods are unappealing.
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Fuck_You_Downvote t1_iz5jt4r wrote

True. And property is valued based on cash flow. Paper cash flow or actual cash flow are the same. So in a spreadsheet somewhere someone said it is worth 100 a foot in rent, and was sold as such. And they guy who bought it says it is 110 a foot and got a loan based on that. If someone moves in under 110 the bank repossesses his building or it just sits vacant for 12 years. Which one will he do?

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