Can anyone say “about a third” with Mr Rogers? Since we’re not including zonbie buildings for some reason (what could that reason be?).
About 30% of Denver’s downtown office space is vacant — and that doesn’t include “zombie buildings” In the Denver metro, “office” has become a 4-letter word
Are zombie buildings those that have been abandoned?
From the linked article… "May 11, 2023 With hybrid work depressing demand for office space and interest rates rising, many office buildings are at risk of becoming “zombies”—with low utilization, high vacancy levels, and financial viability quickly slipping away. This is bad news for property owners, cities, and lenders, all of whom must take some practical next steps:
Property owners must assess and divide their portfolios into five categories, from buildings that can remain as is to those that should be relinquished.
Cities need to establish a financial baseline, drive CRE utilization, support the transition to reuse, and replace lost revenue.
Lenders must implement risk mitigation and servicing strategies, build internal restructuring capabilities, develop a market to sell distressed properties, and expand the product portfolio.
There will be a major recalibration of the office market over the next three years, forcing the nation to deal with a surge of zombie buildings and very stressed urban corridors. Given the stakes, property owners, cities, and lenders must begin working together to rethink these spaces."
“Major recalibration” aka purchased by investment firms such as Blackrock for a pittance.
Blackrock has its own problems, it owns a large inventory of housing which will be devalued shortly.
So perhaps it’s a good time to take a drive around your fair city and start thinking about what you want to pick up on the cheap.