The Biden economy is performing as expected – huge spending leads to record-high inflation which leads to increased rates which leads to banks failing and Americans losing their hard-earned money. Now the commercial real estate segment in the economy is falling apart.
The beginning of the end of the Biden economy is here. Americans are suffering under record inflation, increased lending rates, and ultimately banks failing. Now the banks have to contend with the commercial real estate collapse in historic proportions.
The best commercial real estate is rated class A. This is the best commercial real estate that is expected to maintain its value and more likely grow in value. But this isn’t happening in the Biden-Obama economy.
One example is a pair of class-A office towers in California that recently sold at a 36% discount.
A scary story:
– Blackstone buys these in 2014
– Class A office towers in Cali
– Sold days ago at 36% discount
If this is happening with Class A office in Santa Ana, what’s next for Class B/C… pic.twitter.com/C4dEGD9qG1
— Aleksey Chernobelskiy (@chernobelskiy) April 9, 2023
An article on the sale notes the occupants in the Towers which include, ironically, the Ayn Rand Institute.
A Blackstone spokesperson declined to comment. The towers were built in 1987 at 5 and 6 Hutton Centre Drive, and tenants include UKG, Michael Baker International, Psomas, Nations Direct Mortgage, HNTB and the Ayn Rand Institute. The property includes a fitness center and six-story parking structure near John Wayne Airport, and the 55 and 405 freeways.
The recent decline in tenant demand and overall market uncertainty has been significantly detrimental to the region’s office properties. Orange County’s vacancy rate reached an 11-year high of 17.7 percent in the first quarter, with Class A vacancy at 22.8 percent, according to a Newmark report. Indeed, in the office park next door, LaSalle sold an office building for $24.9 million, or 55 percent less than what the firm bought it for in 2019, according to reports.
Commercial property was crushed under COVID work policies. Many Americans were forced to work at home and the companies that did this realized that their big office towers may not be as necessary as in the past.
This along with fast-rising interest rates in the Biden economy are crushing this market segment.
This is the result of the Biden economy. No more lies from the left.
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