> The proper market reaction is to spend the money to convert these office spaces to some other use, perhaps residential.
That would be very expensive. To be able to afford that, the prices need to crash seriously hard.
That would be very expensive. To be able to afford that, the prices need to crash seriously hard.
But every other vested interest is aligned with the developer handouts. Eg, construction, government for more taxes, unions, office REITs that want less competition, big finance who want the CMBS problem to go away. Even the mortgage industry would profit more from selling tons of new condos vs fewer more expensive resales.