💼Decreasing demand for office space due to remote work and changes in work styles.
💰Potential for major correction in commercial real estate prices, particularly for lower-class buildings.
📉Expectation of significant decline in commercial real estate values in the next 12 to 24 months.
🌇Well-located Class A properties may not be heavily affected by the market downturn.
🏢Advice for investors to hold cash and be prepared to take advantage of exceptional buying opportunities.
What is the reason for the decreasing demand for office space?
—The pandemic has caused a shift in work styles, with remote work becoming more common. Companies have adapted to this new work style and realized that employees can achieve the same productivity without the need for traditional office spaces.
Will commercial real estate prices decrease?
—Yes, according to Jeff Green, there is a high likelihood of a major correction in commercial real estate prices. Lower-class buildings may experience significant declines, while well-located Class A properties may not be heavily affected.
When can we expect the decline in commercial real estate values?
—Jeff Green predicts that the decline in commercial real estate values will occur within the next 12 to 24 months. He advises investors to hold cash and be prepared to take advantage of exceptional buying opportunities during this period.
What is the impact on residential real estate?
—While Jeff Green primarily focuses on commercial real estate, he mentions that residential real estate may also be affected. However, he notes that the Manhattan market, for example, is unique, and high-income individuals with substantial wealth may still afford luxury apartments despite the overall decline in the market.
What should real estate investors do?
—Jeff Green recommends that real estate investors hold cash and be prepared for extraordinary buying opportunities in the next 12 to 24 months. He highlights the importance of purchasing great properties at fair prices rather than fair properties at great prices.
00:00Renowned real estate investor Jeff Green discusses the future of the US real estate market and predicts major changes in the commercial and residential sectors.
02:00Green warns of decreasing demand for office space due to the rise of remote work and changes in work styles during the pandemic.
04:45He suggests that commercial real estate prices, especially for lower-class buildings, may experience a significant correction, while well-located Class A properties may not be heavily affected.
08:35Green advises investors to hold cash and be prepared for extraordinary buying opportunities in the next 12 to 24 months as real estate prices decline.
11:30He also mentions the potential impact on residential real estate, noting that some higher-income individuals may still afford luxury properties despite the overall market decline.
