In January and June I wrote about the impending glut of office space in downtown areas. This is the result of the widespread adoption of telework starting with the Covid crisis. Now, more than three years later, it appears that the teleworkers remain resistant to full-time work in those central offices. Although the number of days they do come to the downtown office have increased, the average appears to be between two and three days per week. City centers clearly need remodeling.
So, the dilemma remains for the owners of all these office-dominant buildings. In many cases rental income is not just down, it’s seriously less than expenses. The problem has expanded to other areas as well. Businesses that depended on the daily influx of all those office workers now find that the flow has been cut at least in half. Once crowded sidewalks are now almost empty. Shops have been closed. Tax income has dropped for the cities. Crime rates in downtown areas have increased. The central cities as we knew them seem to have died.
But the buildings are still there. All that expensive real estate still exists. It would be foolish to just let it rot. So, what should we do to save the situation? Here are some ideas.Continue reading Remodeling central cities