Jun 28, 2022
Summary:
New York Times bestselling author Sam Liebman sits down and chats
with me about real estate; specifically, the we discuss the
valuation of office buildings, which is rapidly decreasing. This is
largely attributed to the pandemic. Many tenants stopped paying
rent, and Sam predicts that valuation of office buildings will soon
be lower than mortgage. With less people going back to work, this
sector of real estate is looking barren. Tune in for more
information.
Highlights:
-Interest rates have gone through the roof
-The real problem is the technology regarding the effects on office
buildings and retail
-You don’t have to live in the city to do business in the city
anymore
-Manhattan office buildings are only 40% occupied—which is terrible
for the valuation of real estate
-During the pandemic, tenants were not paying rent
-Soon, valuation will be lower than mortgage
-We are probably going to see an avalanche of foreclosures.
-Rents are going up, but so are operating expenses (i.e.
insurance)
-Governance has fallen victim to politics
-Remote work is still very attractive to people considering
employment options
-Florida wants to cap the amount you can increase rents to 15%
-If Florida doesn’t have an income tax, where is the money going to
come from to build? It needs more infrastructure
Useful Links:
Financial Survival Network
Sam Liebman