Manhattan’s Trophy Apartments Are Gathering Dust

There just aren’t enough billionaires…

Manhattan’s Trophy Apartments Are Gathering Dust — https://www.curbed.com/2023/11/luxury-central-park-billionaires-row-hudson-yards-weak-sales.html

7 thoughts on “Manhattan’s Trophy Apartments Are Gathering Dust

      • Yes. Crime is up, resale value at the upper end not good (not enough billionaires) and when the commercial real estate market collapses, residential values will follow.

      • Commercial real estate is in trouble. CRE investors are losing their shirts, just like holders of long-term bonds. Landlords face suddenly much higher interest rates that make their variable-rate mortgages economically infeasible, and that make it impossible to refinance a maturing fixed-rate mortgage because the current rent won’t cover the new interest payments. So landlords have walked away from their mortgages and have let the creditors take those properties and the losses. And as we are finding out on a daily basis now, many of these lenders are investors in Commercial Mortgage-Backed Securities and mortgage REITs, rather than banks.

        Landlords and lenders in the office sector have the additional issue of the rug getting pulled out from under their office towers by working-from-home and the corporate recognition that they don’t need this much office space. A stunning amount of the office space in central business districts is now vacant and available for lease or sublease. In a bunch of cities, these availability rates are near or above 30%.

        Quoted from https://wolfstreet.com/2023/10/07/my-take-on-what-qt-has-done-to-stocks-bonds-commercial-real-estate-lots-of-bloodletting-what-it-will-do-going-forward/

      • Wow, interesting!

        My entire Roth IRA is invested in REITs. I wonder if I should get out now. From what I understand with a Roth there would be no problems with having to pay capital gains taxes.

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