Why Corporations Are Building "Trophy Buildings" Amid the Office Apocalypse

Older, less-desirable office buildings across the nation and world are struggling to fill vacant leases - so much so that a $1.5 trillion “wall of debt” threatens to decimate city and state budgets in an “office real estate apocalypse.” Yet even with that looming, many developers in major cities are going full steam ahead to build huge, state-of-the-art, glittering new buildings that are set to add millions more square feet of office space to, for example, New York City alone in the coming years. That might seem illogical - unless you’re a real estate developer. In that case, it makes perfect sense.
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[@TheHustleChannel]

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[@Chicago48]

We in Chicago have a lot of empty commercial space....a LOT! And yet, the County Tax Assessor wants the residents/home owners to make up the difference in taxes....absurd.

[@robertgray323]

Buildings take 3-5 years to plan, design and build . Everything coming on line today was probably started in 2019

[@jefflewis4]

Yeah, but the new building trend isn't slowing down, there are still new modern office buildings being planned in NYC that won' be completed until after 2027.

[@Neon2110]

New building is very high demand

[@AdamRafeedie]

Probably took longer than that to be honest

[@Decoy0527]

​@@jefflewis4, that does surprise me. Same with Chicago. Seems like over capacity already and several big ones getting toward completion.

[@DWNY358]

It's very hard to do a conversion from office to residential. Office buildings weren't constructed to be lived in. They don't have the plumbing and electrical systems that homes require. Ceilings need to be high enough that these additions won't drop them below regulation height, which is typically at least seven feet. Also, office buildings tend to be "fatter" which means only the windowed exteriors could be converted. The interiors would either be "wasted" or other uses would need to be found.

[@Powderlover1]

Mixed use for the win. Buildings usually tend to narrow towards the top, making conversion to apartments a lot easier, leave the big open floors for office space.

[@gagenater]

@@Powderlover1 That only applies to a tiny number of very large buildings, and even then only in places where the construction codes require buildings to narrow as they rise. Most high rise building aren't constructed that way.

[@jceess]

The older, pre WW2 office buildings are often the best for residential conversion. Many of them were built with narrow floor plates, with more access to windows because air conditioning wasn't very common at that time. That makes laying out apartments much easier than huge, blocky towers built in the 1960s+. So, this problem of empty, older office buildings might eventually work itself out as more modern towers are built.

[@danielschein6845]

If you’re on the sidewalk then that’s public space and private landlords can’t shoo you away.

[@jceess]

They were probably on the privately owned plaza in front of the building.

[@tigerphid9677]

Thanks for answering a question that has been perplexing me for several years. There also is the "lead in" factor, where buildings being completed today were proposed 5 to 10 years ago. It should be interesting to see what happens over the next 10 years.

[@Mr_B79]

At a townhall two weeks ago, the mayor announced that they're going to begin office to residential conversations in many of the unused spaces

[@JohnMcLovin-xq3qg]

4:16 is dead on, I've worked in the Empire State Building and the Chrysler Building, now I work at One Vanderbilt. There needs to be a different building class of newer buildings like One Vanderbilt, Class A+ makes sense. ESB and Chrysler Building are both horrible office buildings, Class A, give me a break.

[@trvst5938]

‼️ NYC needs super blocks. Local residents cannot walk safely and the traffic is bad. People need green corridors where they aren’t risking being run over.

[@squirrel9760]

Then move. You live where there’s millions of people than complain the traffic is bad.

[@fraol.a9103]

@@squirrel9760 Wow what a great solution you proposed, you are such an edgy and non chalant character full of innovation, we envy this big brain of yours.

[@squirrel9760]

@@fraol.a9103 yes it is a great idea. New York is New York because of all the people and density. If you don’t like it get out. Bit hard for people like you to understand though.

[@doughayden]

Great report ... my company, Arthroto, Converts older unused office buildings into Residential and Hotel. We only focus on Class B and some C. And they are empty and will never be used as Office Buildings again. Cities have to get a hold of issue now or face economic catastrophe. BTW Metro Lofts are the Kings of Adaptive Reuse ... you should do a full video on Adaptive Reuse.

[@brucebeamon5460]

It’s not for the most part that they can’t…. It’s just the expense to do it is more than most developers are willing to shell out …… Adding PLUMBING and electrical plus there’s also the expense of opening up the middle to add more windows where there’s no need for them in office specific buildings.

[@jhalsey166]

First building you mentioned at 2:42 looks like the Waldorf Astoria, not the Graybar!

[@Smgs-ue7tj]

It surely is the Waldorf-Astoria

[@BoldFollower]

When you're rich, you do weird things like change skylines. My company did this. So dumb. When everyone is pushing for work from home, they go and buy a skyscraper then force people back in the office so they can justify their bad investment.

[@_Breakdown]

6:56 - - (tenant rates + rent prices = help determine building’s overall value) 7:04 - - Q: and subsequently its property tax bill - - HOW DOES THE NUMBER OF VACANCIES + COST OF RENT DETERMINE THE PROPERTY TAXES? (Isn’t that predetermined by the LOT the building sits on?)

[@TheRaptoer]

That would be a land value tax. A property tax is on the whole value, including any structures.

[@_Breakdown]

@@TheRaptoer Where are you getting this from? Source?

[@danielschein6845]

So what’s the value proposition for a tenant in one of these trophy buildings? My own experience has been that my employers shoved me into the cheapest, dingiest office cubicle they could find because why spend money on a landlord. There are a few companies that need to show off fancy offices to the public or their customers but they only need a small space for that and most employees can far away in a dingy suburban spot.

[@sirBrouwer]

Simple it's the age old look me having the biggest.

[@AgentGodzillaRP1701]

The biggest pro is that the NYC skyline gets more skyscrapers for us to look at

[@xjdisuehd]

Next time you get shooed away, don't run. The moment they touch you or physically try to remove you, that's an easy million dollar lawsuit.

[@pbrown0829]

I doubt you will get a million dollars if they graze your arm. Unless you fake an injury but I wouldn’t put that past most people

[@l-y-d-s]

If they couldn’t afford these older buildings at 80% occupancy they can lower the rents. If they can’t afford that then they will sell them to developers who will upgrade or convert them to residential if the location is worth the money.

[@BillLaBrie]

Each of those buildings represents a massive background of profiteering, bribery, and corruption. That’s what keeps them coming.

[@bboixtc]

At @7:40 you're not anywhere west of the Hudson Yards which itself is almost as far west by 1 avenue in Manhattan. So you really meant to say "for that story we need to head west.

[@flakgun153]

The answer to your last question is bathrooms. Apart.ents need wate rpipes eveywhere. Office buildings dont. They put all their bathrooms and kitchens in the same place on every floor. You cant make that work for residentual

[@iansunbury987]

8:14 Cintrash sighting

[@cosmo8840]

Idk what remote jobs you talking abt

[@728huey]

A lot of office jobs have gone fully remote during the pandemic, meaning people can work from home and do their jobs.

[@monterreymxisfun3627]

Short term you're right. Things will get better, but in the mean time, Saturday and Sunday are management's favorite remote work days, with the other five onsite.

[@David_Lloyd-Jones]

It is all created equally: it is precisely 100% exactly as it is. Perhaps you mean not created equal?

[@ArtFreeman]

literally literally literally like like like bro bro bro merch merch merch legit legit legit. I cannot think of any more misused words or made-up words.

[@davemirande8936]

The reason why so few building can be converted to housing is the large windowless floor plates along with minimal plumbing being centralised for restrooms at the elevator core.

[@JupiterCamelz]

I’m willing to bet these corporations don’t even pay the lease nor rent for their office high rises or space! I’ll bet anything 😂 I’m sure of it actually!!!!!

[@heathmcrigsby]

Millennials and complaining about not being able to work from home. Name a more iconic duo

[@danjacob899]

i like her

[@maxwalker1159]

!

[@Tmphone709]

How about twin towers

[@kayEnt3rtainm3nt]

Bit hard to find available offices there anymore. Have you not heard?

[@Tmphone709]

@@kayEnt3rtainm3nt no i meant before 2001

[@kayEnt3rtainm3nt]

@@Tmphone709 That makes sense. Perhaps slightly revised phrasing might have helped to clarify that.

[@StLouis-yu9iz]

Go back into the office. Remote work is crazy.

[@pbrown0829]

Remote work is the best work unless you need to be micromanaged

[@StLouis-yu9iz]

@@pbrown0829 it is horribly inefficient. There’s also the equity issue. Essential workers will always have to go “into office” so why should white collar workers be excused just because they’ve been slightly trained in I.T.?

[@jefflewis4]

Remote work is one step away from being outsourced. If your job can be done at home, it can be done 4000 miles away, and cheaper.

[@StLouis-yu9iz]

@@jefflewis4 exactly!

[@NeygarzruinedAmerica]

If you can work from home you can be replaced

[@samgrillo1]

anyone who works an office job is very easily replaceable

[@JupiterCamelz]

Not so sure about that, if u work within a niche industry your probably better off 🤷🏾‍♂️

[@JAWZMUZIK1]

Id do er

[@stevennaraine9429]

These new buildings will be wired in such a way that allow remote working if need be.

[@salvambala7779]

Because............aesthetics thats why🫡🫡

[@will.davlin]

wool socks to sleep = most dream production youve had🟣🟩