00:00:00
the office sector in commercial real
00:00:02
estate has been permanently damaged by
00:00:05
covid and what led to that damage is
00:00:08
work from home it's an obsolescent shock
00:00:11
and it's here to stay we are not all
00:00:13
going back to the office for the real
00:00:15
estate sector those who invested in and
00:00:17
own offices some are actually going to
00:00:20
be winners from this they are going to
00:00:22
have the newer more modern buildings
00:00:25
that tenants want to be in and if you
00:00:27
look at the data their rents are really
00:00:29
high there will be permanent losers
00:00:31
because if you think somewhere between
00:00:33
one and two days a week on average will
00:00:36
be done outside of the office from home
00:00:38
if you were going in 5 days a week
00:00:40
before that's a 20 to 40% drop in demand
00:00:43
for office a number of buildings fail
00:00:46
and that means those landlords will lose
00:00:48
their Equity Banks may lose part of
00:00:50
their loan balances if they can't be
00:00:52
paid off
