Too Many Office Buildings are 'Literally Obsolete,' Says Canyon's Friedman

Рет қаралды 36,802

16 күн бұрын

Canyon Partners Co-CEO, Co-Founder, and Co-Chairman Josh Friedman discusses the current market for distressed real estate debt. In an excerpt of "Bloomberg Wealth with David Rubenstein," Friedman describes a portion of the office building stock as "literally obsolete". This interview was recorded May 28 in New York.
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Пікірлер: 112

@bvanderford 11 күн бұрын

So we are stuck with these buildings for now. But in the end many are just tear downs. Thank you for speaking some truth

@user-nr7jm1so5j 10 күн бұрын

Obsolete ... beyond bankruptcy.

@AnhNguyen-hn9vj 2 күн бұрын

lol. the investment is not going from billions into zero but into debt by mean of negative balance. oh shyt lol

@tommyfu9271 2 күн бұрын

Why would anybody use buildings in expensive cities as data centers? Makes zero sense.

@calculuscondensed812 18 сағат бұрын

Very very good networking + electricity infrastructure very close to consumers. So if the rent is cheap due to the office bust, why not!

@cuzmariosaidso 11 күн бұрын

I 🤔 wonder how many different state pension funds across the country are holding that 20% obsolete CRE loans 💸

@nobodysfool2232 4 күн бұрын

Very few. The preponderance of CRE loans are on regional bank balance sheets. Insurance companies also maintain ~15% allocations to CRE loans, but have shifted away from office and retail the last few years. The remainder of CRE loans go to conduit securitizations, and pensions generally have very low allocations to CMBS.

@SuperMassman 9 күн бұрын

Technology changed,, that changed society. These cities were established during the horse and buggy days, ,, we adapted new technology to old buildings but at some point, ,, there's a better way of doing things and people abandon opsolet tools.

@ft9kop Күн бұрын

Now we have fiber optics and 5g allowing white collar jobs to be done anywhere. If managers bitch, than make an mmrpg of an office and tell them you've been working from him me since 1st grade...it was called homework

@tomprieto5574 2 күн бұрын

great summary!

@glengosling5636 9 күн бұрын

You said nothing. Waffle.

@oldcat87 5 күн бұрын

CRE are overvalued, SFH are undervalued, simple as that

@mrscottygreenwood 8 күн бұрын

Haha i wonder how many was considered “obsolete”say three years back

@nobodysfool2232 4 күн бұрын

It’s not isolated to office: many apartment buildings in the city are obsolete. Doesn’t stop them clearing at the world’s highest rents.

@gregorysagegreene 4 күн бұрын

Go ahead, that top floor is pancaking, so "work your way down" that 'capitalization structure'. The words they use never change.

@SeanWork 5 күн бұрын

Lol I wonder what the copper and steel of a skyscraper is worth these days.

@boby115 5 күн бұрын

6 cents a pound for steel and copper anywhere from $2.50 to $3.50 a pound (copper is a commodity, it goes up and down on a daily basis). As a building owner get what you can before the wrecking company comes (the wrecking company gets their estimated fee (bid ) plus all the scrap metal they separate). I just had one torn down and leasing the land so Chase Bank can build another branch. You couldn’t give me a C office building today.

@dadevi 11 күн бұрын

Turn them into apartments. It's a shame there are so many homeless because apartments are unaffordable. And people like this are part of the problem!

@kennixox262 11 күн бұрын

A lot of office buildings, but not all, are difficult at best to convert into residential units. This is due mainly to the depth of the floor plate which is great for offices but not so great for residential units that require windows and daylight.

@TurnkeyTrading 9 күн бұрын

who will pay for those apartments every month?

@kennixox262 9 күн бұрын

@@TurnkeyTrading Tenants.

@Rubbernecker 9 күн бұрын

Housing for the homeless? Do the homeless people pay for that? Or do I?

@kennixox262 9 күн бұрын

@@Rubbernecker I doubt that you that much in taxes. What I am talking about, is MARKET rage units in converted high-rise office buildings. Comprehende.? I know that FOX News has skewed your brain. Sorry about that but it is your problem not mine. You see, MAGA people like you don't mind getting government handouts but the moment a person of color does, all hell breaks loose. This why we don't have nice things in this country. Racists like you way back in the 1960's. Public pools in many places because they had to be integrated. The racists have none of that thus NO one could have a public pool. That his why we have country clubs and private day schools. You MAGA people will never ever learn.

@lokesh303101 10 күн бұрын

Never blame the Interest Rates as the Market Values are Independent. The Business Models in giving Occupancy for different categories of Work and Living are determined from the Economy's Purchase Power but when can be given at Right Pace the Downtown Real estate is all Good with the Floorspace Ratios but not to be in Shanty Towns.

@smoothemusic4386 10 күн бұрын

This hurt my brain

@nickfarley2268 8 күн бұрын

Vast swaths of cities lying empty for years because it’s easier for the bank’s cap tables. Behold the efficiency of the free market! /s

@johngoldsworthy7135 3 күн бұрын

It’s not a free market

@rodhoover9158 14 күн бұрын

Irony: Empty Buildings, homeless living in front of them. We can do better.

@VasuJaganath 14 күн бұрын

No we can’t. The moment has passed. It’s point of no return.

@KK-pm7ud 14 күн бұрын

Yes. The homeless can get jobs and pay their fair share.

@Tkenny35 14 күн бұрын

You have the right heart but not a logical mind. Lets just give homeless people free housing while regular tax payers pay for it... Sorry life isnt that easy. If it was, Id just be homeless because I know they'd give me free housing in an empty high rise LOL

@rustler160 14 күн бұрын

Is that Gavin Newsom speaking?

@IUEC38 14 күн бұрын

We already provide free housing for the homeless, smart guy. And yet, you’re not homeless. I guess the world doesn’t work the way you think it does. Turns out that people aren’t driven to homelessness by laziness.

@PilotVBall 10 күн бұрын

Those old buildings can all be turned into data centers. But nothing in the deplorable United States is of any value.

@matthewcondon5187 12 күн бұрын

You can thank Blackrock & WEF for scaring everyone away. Also, those people have a false sense of reality & momentum because of ESG.

@stevenhenry5267 2 күн бұрын

😭

@GreeneJack 13 күн бұрын

From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.

@Adrianascott-jr4in 13 күн бұрын

Excuse me for real?,how is that possible I have struggling financially, how was that possible?

@GreeneJack 13 күн бұрын

I always appreciate God for his kindness upon my life

@GreeneJack 13 күн бұрын

Thanks to Elizabeth Marie Hawley.

@JamesRodriguez-lj5xk 13 күн бұрын

YES!!! That's exactly her name (Elizabeth Maria Hawley) so many people have recommended highly about her and am just starting with her 😊 from Brisbane Australia🇦🇺

@EcstaSea-g9v 13 күн бұрын

I have heard a lot of wonderful things about Elizabeth Maria Hawley on the news but didn't believe it until now. I'm definitely trying her out