News for hackers. Stuff that matters.

A comment on Office Vacancy Rate in San Francisco Just Hit a New High. Parent comment

Re:Office Vacancy Rate in San Francisco Just Hit a New High by grepLeigh on Tuesday October 18, 2022 @11:58AM (#33249412)
That'd be true, if commercial property owners still had to pay their mortgages.

Commercial property owners are seeking forbearance agreements with their lenders. Forbearance is like hitting the "pause" button on a lending agreement, with the hope that market conditions bounce back and the original loan terms can continue.

What that means in practice is that a massive amount of real estate will rot, unused, in one of the most expensive cities in the world.

[ Parent | on HN ]
Re:Office Vacancy Rate in San Francisco Just Hit a New High by whimsicalism on Tuesday October 18, 2022 @12:26PM (#33249899)
Seeking does not mean "will get." Banks lose money from forbearance agreements - especially when there is a reasonable out like converting to residential.
[ Parent | on HN ]