Kansas City Office Summit Denies Impending Commercial Real Estate Collapse

As we go back to work after Labor Day . . . Let's consider how office politics has changed and yet another consequence of technology that now threatens the global marketplace . . .

About $1.5 trillion in commercial mortgage debt is due by the end of 2025, but steeper borrowing costs, coupled with tighter credit conditions and a decline in property values brought on by remote work, have increased the risk of default.

Fitch Ratings already estimated that 35% — or $5.8 billion — of pooled securities commercial mortgages coming due between April and December 2023 will not be able to be refinanced.

"Commercial real estate is melting down fast," Tesla CEO Elon Musk said in a recent tweet.

Caveat . . .

We don't claim to be economists here at TKC . . . But the odds are that readers are probably checking out out this post on a phone or laptop and not from an office cubicle. 

Again . . . We always want to give the other side a fair shot . . . 

Here's how downtown boosters see their future that might or might not align with tele-work reality . . .

"The Office Summit panel will feature content experts from both coasts, along with leaders from Downtown KC.  The Office Summit will embrace the reality that great downtowns today are far more than employment centers."

"Panelists will focus on what makes the urban office setting more appealing for returning to the workplace, including competition, creative collaboration, experiential amenities, arts & culture, sports, expanded streetcar, and housing options."

Quick note . . .

THE DOWNTOWN KC SLOGAN IS "NEVER BETTER" . . . DO YOU KNOW ANYBODY WHO EVER SAID THAT WHO WASN'T IN SOME KIND OF CRISIS?!?

Read more via www.TonysKansasCity.com link . . .

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