30% of U.S. office buildings, worth an estimated $1.1 trillion, are high risk of becoming obsolete as tenants taste change in this hybrid work era. So this is according to Randall Zisler. So he's the former head of real estate research at Goldman Sachs Group.
So when we say obsolete, do not think gut renovation, think this building can no longer be an office building or possibly any sort of Occupy Wall building. Three out of ten office buildings are obsolete. In addition to that, 1.1 trillion.
There's another endangered mediocre middle with limited upside because of uncertainty about the long term demand and the potential renovation costs. So here's the thing about real estate. It's always going to end up at its highest and best use because the land itself is scarce.
Something is going to happen with these obsolete buildings and you should be thinking about how you can participate. Sign up for the weekly newsletter at thelimitedpartner.com/news. And I'll make sure you're getting this information timely so you can make better decisions earlier.
