Commercial real estate investors face a lot of headwinds these days — remote work emptying downtown offices, ravaging inflation, rising interest rates, shrinking family sizes — but they may not be hedging for another “Great Migration.Of course, commercial estate investors see their business as cyclical, managing costs as markets bottom and bullishly chasing them when they climb. Real estate markets crash at varying velocities, and return, often with even greater vigor than before, as if by some natural law. But another “Great Migration” would be outside the natural swing of real estate markets.
A rapid decline in quality-of-life is draining American cities of its people and bleeding the revenue of both governments and investors. There are many reasons to leave major U.S. cities: surging violent crime, failing schools, climbing taxes, soaring housing costs, a sidewalk-occupying army of homeless.
The pandemic opened the door for remote work, which got many office workers asking “Why do I have to live within commuting distance?” Brooklynites have discovered that when they move to the Hudson Valley that they no longer have to pay New York City income tax, Manhattanites have discovered that sheltering in a Bucks County farmhouse means that honking horns no longer burst through their bedroom windows. Many more have discovered Florida, where they can trade away snow and state income taxes for humidity and hurricanes.
Loading…
Source: www.forbes.com
ENB
Sandstone Group
