This is for the US.. Sounds like a lot but it's only 14.8% of office stock available. See my comment below for some of the reasons.. https://lnkd.in/gDCqZnYE #developer #construction #planning #design #affordablehousing #affordablerentals #realestate #commercialrealestate #condos #realestateindustry #interestrates #loaninterest #inflation
@Phillip J. Richardson CD, CRRP, CSM YOU CAN'T KNOW WHAT YOU DON'T KNOW---We Do Know Haha, I was worked as an inspector in four different authorities in Hong Kong. If the contractor found difficulties on the work and asked my advices. I would love to work together and found out a win-win solutions with them, rather than said "No means No". I believe you can find similar person in the New York city's office.
If people are genuinely determined to execute their plan, they will find a way, even when faced with challenges. Conversely, those who are not committed will come up with countless excuses. New York City's actions show that it wants to provide more habitat space for its residents.
Gordon, it would seem you've never received a "No means No" answer from government officials after spending tens of thousands of dollars to make a development application...with no appeal possible. Many seasoned developers have, which makes us unwilling to risk our capital.
President and Founder at BGI Group- 23Milsf-$9Bil
3moBe very cautious. Not impossible but.. .Speaking as a Developer, it's not as easy as one might think. 1. Property almost always has to be rezoned from Office to Residential and many cities prohibit that since property taxes are 3x higher in Commercial. 2. Layouts of office floors are usually deep from the windows to the elevators requiring long narrow layouts. 3.Parking.. Many office buildings have 3 or 4 levels of underground parking. Cities are reducing car parking in favour of bikes and autonomous advances. 3 underground levels of parking are no longer required.😳 Condos prohibit parking being rented to outsiders (security) and they sure wouldn't want useless parking levels being part of their condo corporation for taxes and maintenance. 4.Leases..a Developer would have to wait until all leases expire to be able to start jackhammering in an empty building, demolishing all interiors back to the structure, and replace windows. 5. Development financing..You have to buy the building and hope that you can get the rezoning approved ( 2-3years) as the leases end and the building progressively empties draining cash flow. You then have to put your equity in first prior to Construction Loan, requiring Preleasing.