NYC office vacancy rate hits new record - businesses aren't paying top dollar for GARBAGE!
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- čas přidán 6. 06. 2024
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Coolest cup in the world right here rossmanngroup.com/nycmeme
It holds 2400 cubic feet of water, by the standards of NYC commerical real estate loss factor. 🤡
Lol
At least the mug is cheaper than Manhattan in 1626.
A great topic to cover would be how rent is in part set my expectations the city has of the collectible rent for landlord, property tax etc. Its not ALL landlord greed.
I have been watching for a while now. You gave me the confidence to fix my kids Nintendo switch. I am not afraid to work on surface mount electronics anymore.
Perfect ROFL
Imagine accepting a deal for $25,000 and only giving them a few hundred and tell them "Sorry, it's the loss factor".
More like the "lost-your-goddamn-mind" factor. I mean I knew NYC was crazy before, but this is something else...
That was both so refreshing and funny!
@@Edmund_Mallory_Hardgrove I’ve always said money laundering! When I lived in NYC, I always wondered how else could stores selling post cards and trinkets and shit afford thousands of dollars in rent each month!
If you told me that it was a "loss factor" I might accidentally punch you in the face. . . That's not a loss factor, that's called fucking theft and lying about your product/service which is ILLEGAL!
@@Maki-00 And loans. NYC is in this state of affairs because they rolled on the debt so hard, they don't have a choice but to charge insane amounts to get out from that loan which they took to buy the original property.
The end result is that their loans are going to default and a group of banks are straight up going to have all the keys in NYC with no buyers in sight. That's when you get a nice housing crisis bubble or a housing MOAB (Mother Of All Bubbles, but you can call it Mother Of All Bombs because it's going to be cheaper that way) and everything starts to fall apart.
Shit, banks are already screwed because the US treasury spiked the interest rate so damn high, they're dying because their 10 year bond is now worthless. Like imagine buying a 10 year bond from the US Treasury and finding out that "it's shit" and the next step is "you're dead".
This is going to be the fate of all the "major and expensive US cities" very soon. Their usual response is always going to be "don't panic". The Federal Government makes it's cut "one way or another" and pays off those bonds/loans, but normal folks aren't the Federal Government. Federal Government can wage oil wars, do all kinds of shit, snuff out market competition for other competing countries, but the average person can't do that. They can't rob a bank. They can't kill their next door neighbor and take everything they own. They have to "play by the rules". So the result is they can't pay off their loans.
New York: the FTX of commercial real estate.
Truth
Speaking of which, FTX's Sam Bankman-Fried shared the social-political mindset of most people living in NYC. If Curtis Sliwa instead of Adams had been elected last yr, that would have been one less "d'oh!"
More accurate than you will ever know
@@gridleyhe also shares the same ethnic background of the landlords in New York. What a cohencidence!!
@@joriankell1983 The group in question is admittedly notorious for being very much of the left. But liberals do tend to be very honest, sensible & ethical. As Louis can attest.
I had a similar conversation with a friend of mine about this a few years ago, because this new office building across the street from our workplace had remained vacant for over a year. When I pointed out that apartments have kitchens and bathrooms but office cubicles don't, she replied that a communal area for each floor or building would work just fine, saying something like "people just need to learn how to share."
Having seen how poorly common areas at some of my workplaces over the years have been maintained by people who just work there for 8 hours a day, I can't even begin to imagine the biological horrors that would await the 24/7 residents of an apartment building with communal baths and kitchens. 🤢
Which is why that sharing thing only works when there's someone higher up that can give you an earful and then make you clean up the mess when it goes wrong.
Like a sergeant or mother.
Alternatively when the amenities are owned by someone it can also work or not. Bathhouse, sauna, pool, gym, laundromat...
Either way, just sharing doesn't work as there will always be rotten apples that spoil the bunch.
How far a buck a month per employee could go towards maintenance is nuts, specially if done pre-income tax by some employer scheme.
Real Estate in NYC is different. What happens is that if the owners rent at a lower rate, the owner needs to put more money into the building value. For example, lets say a tenant is paying $20K a month, and building is valued at 3 million. When the store closes, the owner leases the building to a new guy for $15K, the owner needs to put in an additional $600K towards the building value, as the values are based off the rental incomes on commercial. So most leave them empty, and let the residential makeup the difference, as they don't want to pay. Its also a system that forces them to push prices northward. Commercial is a different beast, and many will crash with rising rates in the commercial real estate sector as fed will keep raising rates.
Yep. And the rent would have to be rock bottom for a dormitory like that. Not gonna happen of course.
Woman are stupid which is why they should never have a career beyond kindergarten teacher.
I read about some young people who rented office space to live in. The rules were you had to dress like office workers entering and leaving.
Worked like dorm life.
There was a 24 hour gym nearby, plenty of take-out places.
Saddest part is it kills the vivacity of the city. If they just sold as the natural market would demand, imagine how many cool and interesting stores and rejuvenated public spaces we'd have. It's about the character of a city and rapacious rentier capital driven as speculative assets is becoming problematic everywhere.
The character of the city is finally matching the real character of the city. Hollow and rotten to the core.
New York reminds me of what happened to the Malls in the mid 2000s. Rents went up and up during boom time, but when that time came to an end, and alternatives arrived like internet shopping they still didn't adapt and reduce their rents. Eventually the Malls were 1/2 empty and still the Mall managers refused to lower the rents.
Its just outright greed and they don't know when to stop.
Hell the largest mall developer went out of business instead of lowering rents, and Simon might do the exact same thing. These morons need to completely rethink how they rent out space if they want to be viable businesses.
Known in economics as "sticky prices". Human nature?
They CAN'T stop because they are trapped in debt. The super wealthy don't live off their profits. They live by borrowing against the value of their assets. If they lower rents then the rental value of the property drops and they instantly go broke.
The they ate saying, the remainimg need to cover the empty space. Simular to getting a raise. First it's where are still in debt from the last crisis, then we need to prepare for the next crisis, then it's an unknown future, then it's the upcoming next crisis, finally we have the crisis, or "it is not planned in the financial plan" ...all the time full scale production and the books are full...management doubled their salary and the guys that actually make the money get the same lame excuses
Here in the UK, I was told the reason they won't drop the rents is because it effects the share price of whoever owns the Mall.
What I worry about is what happens when the companies that own these buildings go under and the impact to their financiers (mostly large banks) inevitably gets handed off to the taxpayers.
Give it 2 to 5 years and we'll be there.
2008 but a little different yay
@@cin2110 worser way
@@rossmanngroup lol
@@rossmanngroup This is because of the real estate Investors, honestly they have big pockets and 2 years sounds really short for any sort of turn around. 5 years before they start doing F$K all about it but by then like you said probably be too late. Honestly many big cities are facing pricing problems for their real estate not just New York and its really just sucks.
I grew up in NJ right outside Newark. I moved to Florida over 27 years ago. I worked in NYC for a short time. I have never understood how people wanted to live and/or work in NY for any prolonged amount of time considering its over priced, over taxed, congested, dirty, and very unsafe. It seems more and more people are starting to agree.
I lived in the Big Rotten Apple for almost a year back in ‘07/‘08. I had to move several times, working day jobs yet auditioning or rehearsing for off Broadway performances as an actress and a dancer (even took the Rockettes summer workshop and auditioned, didn’t make it, picked a bad year to audition). Expensive/hard to live there.
Donkey butts, pizza, weed…..
Nice buildings.
A carpenters heaven lol
Money. If you want to work or network with rich people, you go to NY.
@@eazolan yes, I work everywhere in east coast. Few places on earth pay $600/day when everything goes right.
People have been leaving NY since the 80s and head to Florida which right now is slowly turning into another NYC with High prices homelessness etc...
Qartn token and amazon signed a partnership. It will blow up once it hits mainstream.
There’s really nothing anyone can do. This is a prime example of the owner class being unwilling and unable to come to terms with a depreciating investment. They’d rather see the city burn to the ground than accept reasonably priced rentals most people can actually afford. It’s not just NYC either, It’s happening everywhere. NYC is just the most noticeable and obvious.
Signs of a healthy society
The wealthy, to a large extent, have broken the societal contract, (look at Bourneville in the UK, I don't doubt there were examples of corporate investment in its workers in the US in the past?) They only insist on regulation/ big governance when they've lost all their money, then we've gotta step in, because they're 'too big' to fail. I'd say they're failing anyway, capitalism- good, zombie capitalism- very bad and needs to go back to being morally repugnant as it once was...
Need to factor the federal government contribution to supply and demand. All of the federal bailouts make landlords less likely to care about the common man or woman.
"owner class" ? Are you being... antisemitic?
Remember, landlords need to pay their mortgage. So they have to get a higher rate on paper to keep their mortgage. They can not get a lower rate or the bank would be coming down on them. So we watch them burn.
I'm shocked that any business smaller than, say, Citigroup can make it in New York.
Money laundering fronts probably
They don't make it they get by and go in debt.
They used to be able to make tons of money in New York City. But without the tens of thousands or more of people on the streets every die, New York can't come back. And gigantic corporations are leaving and realizing they have no actual need for expensive real estate.
Citigroup (C), which we had the misfortune of investing a sizeable chuck of money in, in 2007, did not make it, as their stock is down 90% from that high. Bank of America (BAC) almost recovered recently to their 2007 high on the other hand.
Fun fact: Citigroup "originally" was in the early 1980s "American Can", who literally made tin cans, and they decided to go into finance. It worked for a while...until it didn't. Officers and insiders however did well.
Many would have a chain store that loses money, while other have a net positive. but yeah, i cannot imagine someone that opens a store in NYC with only a bank loan that covers 3 months of rent would be in their right mind or not have an different motive
I worked in midtown for a year post pandemic and I was stunned with how many retail spaces just emptied out as I continued to work there. So many businesses are just realizing it isn't worth sticking around. Even businesses that have the money to pay for it (CVS was the one I noticed had closed) realize it's literally burning a hole in their pockets.
God forbid these space owners realize that their asking price is morbidly expensive and nobody with half a brain thinks it's reasonable
Actually, an add-on factor of 15-20% is commonplace in office markets all over the country, because that is a typical percentage for common areas. This is typically spelled out in the lease, so you know the usable vs rentable area. No surprise that lies and fraud are de rigueur in NY. My biggest beef with NYC is the huge piles of trash sitting along every street. It is stinky and absolutely disgusting. Fortunately, my daughter just graduated from NYU, so I will never again need to visit that nasty hellhole.
Yup. Gross city
If you think NYC is bad, you should see San Francisco - maybe the worst major city at this point. 29 percent office vacancy rate PLUS crime and homelessness.
NYC does have a distinct odour, and scaffolding, lots of scaffolding
I live in Manhattan Kansas, there is a company here that prints those paper sewing patterns (McCalls pattern company). They used to have an office in Manhattan New York partly to receive mail that got misdelivered and partly because it was perceived that anyone remotely involved with the fashion industry had to have an office on 5th avenue.
Then one year when the landlord came to them to renew the lease he had really jacked up the cost. The landlord changed from measuring square footage from the inside of the walls to the outside of the walls. McCalls essentially said screw that and shut down the New York office.
Good. You can sell paper from literally anywhere. I bet their profits went up an obscene amount that year… =.=“
Another mover from Manhattan, Kansas, to NY was Damon Runyon. Random fact for you... (I recommend his short stories.)
Just a heads up.... you live in the 3rd ring of Hell!😂
I was stationed at Fort Riley for 3 years 😂
Just get a UPS box in Manhattan if you want an address there.
@@MashLimit thnx
Eric Adams recently said that bedrooms don’t need windows 😂 he is the biggest clown
San Francisco's office vacancy rate rose to record high of 29.4% and still climbing. The reason is similar to that of NYC.
almost in par with Calgary lol
Qartn token will moonshoot after CEX listing..
these videos really feel like the documentation of someone who just got out of a toxic relationship watching their old partner's life get progressively worse and worse, laughing all the way
Episode of “Real-estate Cheaters”.
Facts
LOL, when I read this laughed out loud. These videos are exactly as you describe. You passed the breakup phase but you're still pissed off at something. :)
Loved this analogy
It's the same here (Israel)
My parents have an apartment they want to sell on my recommendation.
They tried to sell at peak time, but the broker advised them to wait "because prices are rising"
Then the interest rate went up and the potential buyers disappeared.
They have been trying to sell for almost a year and are unable to find buyers.
But the broker insists that prices in the market have not fallen, people simply cannot buy.
Just goes to show how stupid people are
"The prices are high but no one can buy at these prices" is a statement I expect to hear from someone with the level of understanding of a 15 year old
Excatly, these are all fake prices pushed northward by tons of fake money, as most have nothing in savings to purchase. Whats coming, will be big.
It sounds like your parents’ broker is trying to get some good commission
You need a new broker. That’s one crazy story.
Depending on what your parents need urgently, it may make sense to rake apartment off the market. Cash may be depreciating rather quickly if unused
I was a commercial real estate broker in Chicago in the 90’s and had to help a client in Manhattan and experienced your loss factor. Totally unique to NY. The corporate attorney tried to get the NY landlord to use the BOMA standard for loss factor and struck out.
You mean the THIEF FACTOR; the MAFIA GUYS FACTOR, the DEMONS FACTOR. There is NO Such thing; I'm a New Yorker and they are ALL MAFIA GUYS; Just Criminals.
My husband was a valuation expert and we were in NY a number of years ago and saw this same phenomenon on Madison Avenue. Hard to figure. And who wants to live in NY city? Who are these people? 😮😮😮. Your analysis is spot on.
At this point I just assume every real estate developer in NYC is either laundering money or using the real estate specifically for tax write offs for a larger company that actually makes money.
I agree!
It was discussed in his other videos. real estate is used as collateral for finance shenanigans, and the value of said real estate is linked to the rent price. So if they lower the rent their real estate value goes down and with that all the finance shenanigans they are doing implode and they have to pay millions to investors or banks or whatever.
Just as usual, when finance comes in it all becomes a big scam
@@marcogenovesi8570 Indeed, just finished reading Whitney Webb’s two volume expose One Nation Under Blackmail on all the biz and political, mob and intelligence rackets from the around 1930s to Epstein and friends. Banks are super dirty in all this too. At this point, the global elite are pulling out the proverbial rugs from under humanity. Vengeance will be the Lord’s.
I heard hedge funds get 30x margin to play. So if they have collateral of a billion dollars, they get 30 billion dollars from the big banks to “invest” in the stock market.
Yah. With that kind of incentive, I would keep “value” of the collateral up as much as possible. collateral
@@dabda8510 And that is why Congress must bring back the Glass Steagle Banking Act of 1933!
When I was 14 and playing MMORPG s, I already knew if I wanted to sell my stuff and make money, I had to sell my stuff at a price that people can and will pay. Seems pretty normal to me. But hey.. I'm not from New York
I learned so much about supply and demand from the World of Warcraft auction house it's not even funny.
Look into land banks. They use buildings as a store of wealth because the currency and stocks can't hold value.
I learned very early that If i wanted to Sell I had to Sell cheaper then everyone else. So i look for the Average and sell 10% cheaper then it.
@@BlueBD You still have to factor in your own costs, or you’re just handing out free welfare. Raw materials and auction fees need be respected. =D
On the other hand, work hours aren’t factored in since it’s just a game. IMAGINE how that would go… 😂
I was mostly too lazy to do the maths. I put things up for auction (potionmaker…) and switched around prices until the returns were positive.
what i learned playing poe is something is only as valuable as someone else is willing to pay for it.
When you have a City full of trash, filth, homelessness, rising crime rates, and then a huge bureaucratic process just to start and run a Business, it's no wonder you have a failing Economy and empty buildings.
People want to feel safe, secure, and live in a decent environment that isn't crazy expensive, but, the bureaucrats and failed Government policies keep destroying amazing Cities.
Here in the Netherlands, I often hear people ask "Why don't we convert offices into homes?" It's exactly like Louis says. It's not set up to be housing. Some offices are also basically next to noisy factories, which is not a good location.for housing.
I think it was you who explained couple years ago why property owners don't lower the leasing rates. They have loans against the property that is based on a certain revenue assumption per square feet, so if they lower the lease rates, they won't be able to refinance the loans with lower expected revenue per square feet. If interest rates remain high (relative to recent history), there's increasing chance commercial real-estate property owners won't be able to refinance their loans. You'll start seeing collapse of commercial real-estate in NY and other high premium cities.
Good... let it collapse. Let the city crumble. Somethings, things need to be destroyed before they can be replaced by something better.
If the lease rates are unsustainable let it collapse if they can't refinance let them go under the resulting recession will bring the prices down to levels that can be sustained by market forces alone and not be artificially inflated. Really this needs to happen
I hope there is no government bailout when the collapse happens, but something tells me that my prayers will go unanswered.
@@johncherish7610 NYC has already gone thru cycles of boom & bust. Our whole economy is set up to boom, then bust, as money gets cheaper, then more expensive. Bankruptcy and debt write downs (or bailouts) are the only way for the system to fix the imbalance between loans & payback + interest. More money is owed to debt than exists in total. A fundamentally unstable system. Interest rates are based on ridiculous things, like prevailing winds at the Fed, instead of need based, such as giving every person a guaranteed 1% financing for their mortgage thru a government bank. Instead, we all pay to bail out the rich, while they steal our labor, land, homes, and souls.
@@salkryeful a broke government cannot bail anyone out. We are heading towards a collapse that will make the great depression look like a happy dream. These morons have tied everything together so tightly that when the collapse starts everything will go down.
That $75k/month location…even if it was $7500 they still couldn’t make the payment. It makes no sense
That’s exactly why they remain empty. No one can generate the kind of foot traffic needed to cover the rent. The math doesn’t add up when you’re not profitable.
It's bad i took the A train from Manhattan to Brooklyn during Ruch hour and the train had empty sits. People not working in Manhattan anymore.
I live in Toronto, a large Canadian city that's a bit over half the size of New York city. It does not look like this here, stores are occupied. A few went out of business over COVID, but new ones have opened up. I mention this because this is very much a New York problem, many other cities are doing fine.
A lie is a lie. These crooks need to go bankrupt.
Never underestimate the power of unrealistic expectations.
Exceptional content. Thank Louis!
Lived in NY for 30 years ,horrified what it has become . So glad I left . Politicians straight-up destroyed that state with all the garbage the homelessness parking and of course the prices still keep going up. People have had enough
I love writing a comment without watching the video for no reason.
Thank you kind sir
Anyone living in NY (myself included) would verify that the vacancy rate is MUCH higher than in the article as Louis mentioned. you just gotta walk around to see it for yourself. AVOID New York.
It's not lying it's commercial real estate
oh no realtors that lie about more or less anything related to the commercial real estate to their customers also lie about the vacancy rate to journalists
Not just New York. This is happening everywhere, though perhaps not quite as bad or as obvious. Yet...
When I take a walk through downtown where I live, I see lots of empty stores now. It was bad before Covid, but now it's a lot lot worse. Many places are shutting down now that the support-loans the got to get through Covid has to be repaid. It was obvious that it was going to happen, but still... I'll admit it's a bit shocking to see just how bad it is. And this is only the start... 😞
@@chaoscarl8414 It's a problem everywhere. As bad as NYC is, it's far worse in San Francisco, which has a office vacancy rate of 29.2 percent (compared to the "official" rate of 16.1 percent in NYC). The additional problems of crime and homelessness make it a vortex for what's wrong with the commercial real estate market.
Love the board repair and NYC real estate series of this channel!
I had the same "loss factor" problem when I bought a house. Advertised 1366sqft; actual outside dimensions of the structure including stucco and walls: 1250sqft
Crime : Up by 1000%. Cost of living: Up by 2000%. Average salary : Up by 00001%. NYC is screwed.
Seeing these NYC videos makes me thankful my ancestors left that city when they arrived in America and went to work in the coal mines.
Thank you so much for your sincerity and your responsibility to stand up to the absurdities of power structures
Thanks for you videos. I almost went mad trying to figure this stuff out on my own.
We need more homes and apartments ;_; why tf are we getting more office space
Empty offices are better for money laundering and credit collateral. Tenants are such a hassle.
Money laundering lol😂😂.
Rent control, affordable housing requirements, restrictive zoning laws, historical preservation takeovers, etc., etc. all discourage residential development.
@@Username12665 He's talking about money laundering and you're laughing...... 😂
Actually you won't need the homes at all if business leaves there will be no economic need for housing for markets that have no jobs
It's like the NYC apartments. There are plenty of vacant overpriced apartments in the city, but they keep building more!!
And keep raising rents as high as possible. Good luck to landlords going forward.
The city caters to the ultra wealthy and poor people living in projects/"affordable housing" lotteries and rent controlled units. The sucker middle class still paying market rate is disappearing.
They aren't built or owned to make money, but to store money. Millionaires and billionaires all over the world buy NYC real estate to store their assets. It's like bitcoin for them, only it muscles people out of the market who actually live there. If they started taxing foreigner owners of property more, this would cease to happen.
@@TheCodeAlwaysWins Uh, they have a Mental illness and they will ALL end up in a Mental Institution where they will NOT be able to enjoy all the Money they STOLE from the people for Decades.
Great work .
thanks, Louis
NY real estate is extra funny because it needs to crash, but they literally won’t let it. The sheer stubborn will is actually infuriatingly impressive. But I also fear that if/when it does crash, it will all just get scooped up by Wall Street and investment firms again.
It doesn't matter. It is falling. Similar to China with ghost cities.
Adverse possession laws need to be stepped up. Keeping empty store fronts needs to be made more expensive
let it die. Everyone should leave.
@@Demopans5990 Yes! More regulations! That will solve it.
@@nonyafkinbznes1420 in this case yes. They are only trying to eliminate small businesses with the way they create these rules now since larger ones can afford to watch smaller independent shops bleed out.
It almost feels like there's some type of real estate bubble
Impossible! Such a thing could NEVER happen again! And again! And again! And… 😱
There is in commerical RE, but not really in residential YET, the major cycle peak will probably be around 2026/7. Look into the 18.6 year land price cycle theory. Land value tax would fix this.
Right on!
I love how the politicians talk about converting office space into apartments like THEY own it.
It's also not cost effective. You need to strip the buildings to do it properly.
@@MBisFrenchy god in heaven did i ever learn that! plumbing, gas electric, hvac in commercial vs residential buildings are often completely unsuitable for dwelling. reno'ing an office tower for some kind of residential use is not only gonna be crazy expensive but there are office towers where it just. Might. Not. Work...
@@Scriptorsilentum Agreed, most people just go hey turn it into apartments like it's easy to Retrofit.
UN AGENDA 2030 Anyone????
So called 'politicians' 'governments' are just spokespersons and public relation departments for the money creators (aka Federal Reserve Corporation and its board members). Money creators own EVERYTHING, since they create money out of thin air. So in short, yes they own it.
These spaces will be converted for migrant boarding.
I know you for a while said "I won't leave NY because I employ 12 people and I can't in good conscience leave them behind".
But there comes a time in ever man's life...
Yes we know. I'm glad you left.
You gotta do what you gotta do.
Louis, the point of the old legislation was to keep people in tenements from living in virtual tombs. The way around it these days would be to open up space that does grant access to fresh air and light with a little architectural creativity, though the bigger thing nobody wants to say is how expensive that would be. Also remember that over a hundred years have passed and the downtown area of NYC has buildings of about six stories, tops. The big vacant office buildings can get as big as the Chrysler building.
My own private, wildest fantasy is one where the FEDERAL government stands up and says, “tough shit, boys. We won't play ball anymore. You are going to rezone those areas for a mix of retail and residential. We already have told you a thousand times we are not going to bail you out. You are going belly up, real estate czars, for your greed. You won't get a dime out of us to fix long ignored federal projects either because you have proven you are poor managers and make Boss Tweed of Old look like a choirboy; the only difference is you chose real estate over politics where he is concerned.”
The buildings would go into receivership and the too big too fail speculators and money grubbers would wind up either on Rikers or peeing themselves in Tompkins Sq. Park, mumbling to themselves. The bidding would be restricted. Certain foreign entities that shall not be named shall be banned. The natural cycle would be allowed to happen where if you mismanage, that is it, and another can take your place.
I know, it is a dream, a fond dream. But it would be no less than what the oligarchy deserves. It would be nice to get rid of the politicians that control the machine, those who are now often over 65 and lifers no thanks to the lack of term limits in this nation, and vote in a new brnd of politicians for Washington that could overrule Albany OR the mayor's office, but that cannot happen until New Yorkers finally have had their fill of bullshit and do things like refuse to pay a cent of rent to ANYONE. When over a million start to march over the Brooklyn Bridge, then and only then shall the Hand of fate be forced.
Like I said, it is a nice dream.
So Wise , Thank You . Not to mention the losses from shoplifting and all of the other crime
This is mainly a Manhattan issue. The outer boroughs are thriving right now because higher income people moved further out to get more for their money since they work from home and they’re spending money in their own neighborhoods since they’re there all the time. Instead of spending $18 on a salad from Sweetgreen in Midtown every day it goes to a local restaurant. We have less needless office space and more commercial spaces appropriate for service businesses.
This is in some trendy areas but definitely not representative of the trend in outer NYC boroughs. More often is the opposite with shops shut down.
only with some very wealthy neighborhoods. The vast majority of people that can leave already have.
This leftist pipe dream of 100% residential/service economy for NYC is absolutely toxic.
Ehhhhh
.....
czcams.com/video/1Yv1jx5I9TE/video.html where I used to live. That's just retail. Then you have the rest of Brooklyn.
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This. czcams.com/video/mUyubCDxF8M/video.html
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The trend is one that has spread from the core of Manhattan outwards.
@@rossmanngroup Oh of course the housing prices are elevated in the outer boroughs too. Shit flows downhill. But you’re not going to see the vast emptiness that you see in most of Manhattan. Look at Jackson Heights, or Bay Ridge, or even dare I say it Staten Island. New retail commercial spaces are popping up left and right here and they’re packed with customers all the time.
I have to give you a huge amount of props Louis. Having met you personally one time, being a subscriber of this channel for many years, I am utterly surprised you did not laugh in the face of the realtors. I would have laughed really hard in their face, going to the point of it being utterly fucking rude. The prices that they ask for, even for New York are ABYSMALLY bad. I'm surprised any person with a business would even AGREE to these terms.
When you let someone encroach on your boundaries, they just go further and further until they've stepped too far, and then they tell you "Well, you let me get this far!" NYC is a joke.
It reminds me of a movie recently where a family meets another on vacation. The new family starts getting rude and imposing more and more, constantly pushing. Eventually they kidnap the family's daughter, cut out her tongue so she can't talk about what they did, and murder her "old parents". During the scene were they kill the parents, the father asks "Why are you doing this to us?"
The villain's response was: "Because you let us."
You give an inch they take a mile.
@@oblivionsa7973 wtf what movie is that? Sounds crazy
You are so right.
Thanks Louis
Tell everyone to be scared and stay locked up inside for 2 years and then complain that the streets are empty 🤦♂️
Every large city which was locked down has lost roughly 1/3 of its restaurants, gyms and 1/4 of its small businesses.
"It's free real estate"
Yeah only half of it
My business takes me all over the US, and believe me, this problem is happening all over America from NYC, to San Francisco, to even Atlanta, where I learned office space is down 25-30%, and only getting worse. This is the beginning of the end for commercial real estate, with the "New Normal" being these same property owners forced to convert their millions of square feet of empty offices into living spaces for the poor and middle class. Get ready for it because it's coming, just like their all-digital currency. This is 1984, people.
Thanks for the video.
Don't worry, the JP Morgan & Chase HQ that they're building will surely save the city, surely lol. What the city needs is more office space.... but with amenities
@@JimAllen-Persona Sounds perfect to me. Or have a leaky pipe on the top floor destroy everything beneathvit.
As a realtor, I can attest the "hold the line greed" will be the downfall of many a "small/medium" landlord and only services the mega-"we can just write it off as a tax loss or just hold it as a land bank item, cash flow isn't the goal" corpo owners.
Adapt, sell to the tenants (coop) or brace for much needed regulation in the marketplace.
regulations is the problem in new york city. You can't change anything when the government requires dozens of forms in triplicate to do anything at all. New York City will die forever, just like Detroit did.
Do you wanna know why landlords don't care spaces are vacant?
Because those landlord are themselves investors who see that land as safer stores of value than banks.
The market for land banks currently eclipses land being used to add value, imagine that.
Agreed Louis, seeing this all in the East village too
If I remember right from Louis’ other videos, it is the banks who have given huge loans with real estate as collateral that are purposefully turning a blind eye to the true value of the ‘asset’. The challenge is to find out which institutions are accumulating this risk so we can all keep a safe distance. Hopefully it is just smuggled oligarch money but fear it is somebody’s 401K value about to disappear.
Yes, their entire fiat system is on a bad ventilator. The loans perpetuate/ prop up one of the largest parts of the scheme.
It is a make believe economy.
@@weekendatbernies2265people don’t want to admit FDR fucked us on the “””new deal””” because the story of them recovering from the Great Depression faster (which is probably bs) sounds nice despite the repercussions
In 10-15yrs, NYC will be the next Detroit.
Probably longer than that. Too many people still worship the place.
Speaking from a Cellular service angle, providing coverage in NYC is insane. Being able to run a fiber cable to connect a transmitter/receiver node that will cover a couple thousand feet radius from the antenna's, can take years. The only thing close to the red tape for comparison are dealing with the railroads for going across tracks over or under. THEN, once you get the equipment online, any maintenance requires access, which can be a nightmare since most require permissions to go on roofs, in attics, or sides of buildings. Everyone has their hands out.
the landlords will never learn,
their properties will get foreclosed, taken over by the city and they will still refuse to drop the rent.
The developers, property owners, and politicians financially rely on not understanding the facts you've laid out. They'll never learn.
You gotta get paid to get paid…..🤣🤣🙄
The company I work for closed offices in London, Atlanta, New York and New Jersey - we have all gone remote.
Lots of companies have done the same - so office space is up and less people are in the city centre's spending money as well.
I lived in NYC back in ‘07/‘08, and I thought the rent was awful back then. I knew that this would happen, eventually.
@Chad Abercrombie nothing, keyboard warrior
It never ceases to amaze me how people just don't appreciate supply and demand. So many think they "deserve" a certain amount or it "owes" then a certain amount because they spent that on it. Same thing with house prices, so many chase the market down. Many small businesses increase their prices because their market has dropped, its just dumb.
VERY DUMB INDEED.
That's so amazing that this continues in NYC. One would think it'd have to collapse some point soon... but will it ever, even? How much is going on, unseen? How deep and bad is the corruption?
It's going to collapse within a decade
The same reason it hasn’t collapsed the suburbs. The growth Ponzi scheme
i wonder if the corruption was ever truly cleaned up it's likely this whole system would vanish. Outright collapse.
Section 8 and snap will give them free food and apartment. Those types are staying.
@@Notme-tq4xs nyc can have them.
"Loss Factor" =.FU - If there's no accuracy, there's no business.
It looks like all those real estate agents claiming "loss factor" are now suffering loss factor as these lies are coming back to bite them.
Its fun watching the city I have lived in my whole life grow emptier and emptier... both in office space and commercial retail, so many empty spaces. I wonder how bad it will get, covid didn't help but the problem runs much deeper than that.
Detroit is the example New York City is trying to duplicate.
I will still remain the capital of money laundering in the world.
Honestly? It's not just a New York thing. Here in the UK, things are pretty bad. I visited my nearest City for the first time in months a couple of weeks ago. Depressing. When I was growing up, the shops were all full and the City centre was always busy. Then they stupid council decided to build an out of town shopping centre. That's when the city centre started to suffer. The internet has since completely killed it. At least half the stores are now empty. Greedy landlords have not helped either. All the towns in my area are like this.
A prime example of greed is the local plastic manufacturing factory that closed down a few years ago. The town it's in has never been a shopping hub, being a little bit out of the way. The factory itself isn't huge. The property company who now owns it expects to receive £250,000 a year for it. 😂😂🤡 Raised a few eyebrows when someone pointed that out. Something tells me they'll either offload it to another property company to build houses on or continue to expect someone to eventually snap it up.
This happens in the rest of Europe too. The city centers have become stupidly expensive, so shops and people move to the outskirts of the city where they create new centers. Soil sealing has reached insane levels. They are cutting down forests to build parking lots and one-storied buildings! You would think environment protection laws would prevent this, but no, the real estate industry can do whatever the fuck it wants because it owns most politicians. Greed will destroy the planet.
The town I'm from is a bit of dump also as it used to be great but is now mostly comprised of charity shops which is definitely the sign of a town past it's former glory.
However, there has been some new investments and a few new shops have opened recently so I hope things can turn a corner but I do wonder how long things will last until the council fucks it up in some way. Either way the Internet has a lot to answer for
Honestly the UK housing situation is fucking insane. Not enough supply especially in regards to social housing and housing in general being seen too much of a asset which is one of the major reasons why houses have gone to insane levels and are a hindrance to social mobility particularly with young people.
it's all greedy landlords. You can't compete with gargantuan internet sellers when 90% of your income has to pay the rent.
Ditto all major cities.
Why not just manufacture plastic again and convince the UK government to enact "prevailing wage" legislation so SE Asia can't undercut you?
Very engaging video. Thank you.
That sounds insane. I can remember studying psychology when I was younger & when we studied mental illness they said there was more mentally ill people living in cities but they didn't know whether mentally ill people found cities attractive so moved there or whether living in cities makes people mentally ill. Lols. The people in real estate in NYC are nuts. I live in small town northern England, I just like your channel.
I heard there was an experiment they did with mice. They had two mice communities, in one mice community they gave them one fourth of the living space. The rats in the city like structure started fighting, stealing each others food, and becoming sexual deviants. Stay in Northern New England.
Covid and remote work and they are building new office space ?
As someone who's been following and enjoying your content for quite some time now, I have the utmost faith in New York's ability to learn from its mistakes and make real, meaningful changes on the road towards progress!
You would be a great straight man in a comedy act. I almost believed you were serious.
@@nanoflower1 Haha, much obliged! 😅
now that's how to write sarcasm on the internet. I can't wait to cheer over the dead rotting carcass of that vile disgusting has been city.
there needs to be a comedy tour in your future! Well written to make someone believe that this is what you believe lol. Have a great night and a great weekend!
You haven't been following for long! :)
I had a design/build studio in the city paying a ridiculous rent, now I'm upstate where I paying about 50¢ s/f. The city just makes no sense for small businesses.
Always glad to see your smile, Louis! In the late 90's I had a little music school on Lake Eustis in FL for $1 sq.ft. Lovely little place right next to the lake. A few miles away in Mount Dora, office space was $25. And we thought that was a rip off! Man-o-man, Louis, what you're showing here boggles the mind, brother.
if they start renting out the space for a lower amount, then that is an admission that the building they own isn't worth what they say it is worth, which they need to be worth what they say it's worth, so they can buy another building using their existing building as collateral for that loan...
so fraud but everyones in on it?
If only NY had recall elections like CA and other states.
Dont look to Cali for answers, its a s***hole.
Louis! Hi!😃😃 I haven’t gotten a video recommendation for you and your channel in I don’t how long. I’m very glad to see you!! I hope you’re doing well. 😃😃
NY city council proposed taking empty office space and converting to "low income" housing. But over 80% office space can't be converted to comply with residential regulation and the remainder is not economical to convert.
I loved hearing that sound byte between you and the real estate agent about the square footage.
low-trust society with that bullshit, I wouldn't want to rent or even own in NYC considering what I've seen from your documentation of NYC.
i always wondered how a lawsuit for fraud would go on the deceptive square footage, they're wasting your time in not only tricking you into looking at their location but forcing you to double check the real square footage
We are witnessing irreversible societal collapse.
I've lived in New York all my life, the issues that NYC has trickle down and end up settling into the small towns, it's kind of frustrating and hopeless. New York is easily one of the worst states to live in, and it's by design.
I tend to wonder if ny city is just a huge tax write off, meaning lets say you have a very large building that rents to businesses.
you charge rents totaling 100k a month, being that the building is empty can you then write it off as a loss on your taxes?
would make sense to me if that is how it works.
I bet lots of it is that. Who knows Who actually owns any of the real estate.
That’s what all those huge empty luxury high rises are. In billionaires row. I believe there was a whole article I saw on it. They stay empty and passed around rich people like art. No one actually lives in them at full capacity, just write it off as a loss and keep it.
Not only that, but when banksters sell those mortgage loans off for pennies on the dollar to each other they usually take full tax losses each time. When I fought banksters devaluing my property title in court each one of them filed for bankruptcy and claimed a full loss for the whole loan we were in disagreement about when they wrote up a judgment claim. They numbered about half a dozen by the time two decent judges I drew made them, bring in docs or drop their cases. Docs show fraud so they dropped the case. And sold the paper off. To smaller entities each time I noticed. Even though I had paid over $60,000 on a $93,000 loan at that time they tried to claim a full loss. They do that over and over and that's why our US budget looks horrible most of the time. Real estate is the biggest tax scam ever the way this country plays the game. If your county has not sued MERS and those banks you are likely paying the taxes they don't when they don't pay to record property transfers and just stick them into the private database to hide their fraud. Only 12 counties of over 3,000 in the US had done that at the time our local states attorney did. They now have to record transfers in our county records as we all have to do. I paid $55 for my recordation many years ago on a $100, 000 property. Multiply that by many thousands. Do YOU want to pay their bills for them?
Going to work at an office is so 80s. Now NYC will have all these empty sky scrapers
I live in a small seaside city in the UK. Its exactly the same here and all the retail/office properties are owned by hedge funds and aren't even interested in talking unless it's a major company and contract length. The exact types that have been leaving in the first place.
Hey Louis, would you mind talking about “ghost jobs”? The Wall Street Journal came published an article about it recently and I’d like to know what you think.
"Loss factor" actually do happen elsewhere, though it is called other things like common spaces or just simply walls and entrance ways and such.
My apartment is listed as 71 m2 if I remember correctly. In reality it is quite a bit less than that, but I pay for 71 m2 because I pay for the area of the walls, a portion of staircase outside my front door, and for my basement storage room as well. Those can have a smaller price per m2 than my actual livable space, but the point stands that where I live (Denmark) listings do have a "loss factor" like thing too.
Obviously the solution is to list both the area paid for, and the actual usable areas, and around here most reputable companies will give you access to both pieces of information, like listing plan drawings with specific and actual sizes for all rooms and such.
Yup, my 600 square foot apartment was listed as 800. It wasn't until someone else said "We should measure this" that I realized they must have counted the walkway and my parking spot as part of the square footage.
@@reaktorleak89 fuckers always measure the outside but not the inside of places
Corruption on the level of $850,000,000,000 is forgettable, but if you earn $20,000 a year and fail to mention one of your jobs for $100 you're under the boot heel.
Who wants to risk their life taking public transportation and be targeted because of their ethnicity?
If you're super leveraged, and interest rates go up, you possibly don't have the flexibility to lower rents. You're basically insolvent the moment you do so. You'll have to pour all your cash into mortgage payments to keep up until eventually, you need to refinance. When that happens you're just done because no one will be lending so you'll dump the property at a loss. There's a crash coming really soon.