Real estate billionaire Sam Zell says office space will recover ‘much faster’ than retail
Office space demand is expected to recover from the depressed Covid panademic levels, long before it rises for retail properties or property billionaires. Sam ZellCNBC, Tuesday.
“Everything between the top mall and the corner grocery anchor mall … [there’s]Zell said that Zell’s comments raised grave questions regarding its viability. “Squawk Box” interview. Interview.
Equity Group Investments’ founder, John Equity, expects that the office market will rebound when Covid is “less of an risk”, although hybrid work may become more common. He said that the speed of recovery depends on companies with thriving businesses who hire more people to work in offices. The demand for workers’ time will ultimately determine how much time they spend at the office.
But, there are still problems in the office market.
Zell said that obsolescence was a major factor in the office marketplace, and he believes it will make assets unsellable without substantial investment.
The disparity between office costs and office attraction is evident. Pricing has not changed much. Zell explained that there hasn’t been any sort of distress situation. However, he said the dynamic may change as bond yields are rising and market interest rates have increased in recent weeks.
Zell stated that low rates have helped to keep the office market stable. Zell said that he believes the same thing as before. Federal ReserveThe Fed must immediately increase policy rates. After the end of bond-purchase tapering, Tuesday’s two-day Fed meeting in January will begin, and it is likely to raise rates four more times this year.