Nearly two weeks ago I wrote about high vacancy levels in tall office towers. Today comes a Fortune article, echoed at msn.com, pursuing the same themes. In it Fred Cordova of Corion Enterprises opines as follows:
There will be bifurcation... The product in a good location with a good, safe environment will recover. And then you've got another group that will somehow hang in there and get reset in pricing.You have others that are basically worth nothing - the D class. Those just have to be torn down. That's probably at least 30% of all offices in the country.
As we noted earlier, not all office space can economically be converted to dwelling space that meets building code requirements. Two choices: (a) water down the codes, or (b) knock down the buildings to reclaim the real estate.
