commercial space dissappearing, making way for residential space

Discussion in 'Economics & Trade' started by kazenatsu, Aug 8, 2018.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    I've been noticing something. A lot of former commercial buildings have been closing and being replaced with new residential developments.

    That's fewer businesses, more homes. It sounds almost paradoxical.

    That may be a sign of the economy. More people, with each of those people having less money to spend on businesses. So we're having a higher share of the overall GDP go to housing.

    Go out and see if you notice this in the areas you live in.
     
  2. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    One article about office spaces in D.C. not being able to find tenants, and discussion by the mayor about trying to convert them into affordable housing:
    https://www.washingtonpost.com/loca...4d09ff5a4a8_story.html?utm_term=.aa9f5c1f9964

    It says residential rent and home prices in D.C. have risen dramatically, yet the city also has a growing surplus of empty office space, with double the vacancy rate there was a decade ago.


    The Sad State of Suburban Office Parks
     
    Last edited: Aug 8, 2018
  3. perdidochas

    perdidochas Well-Known Member

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    It's from the rise of online shopping and telecommuting, I'm sure.
     
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  4. Thought Criminal

    Thought Criminal Well-Known Member Donor

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  5. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    In some cases the high rent prices in overcrowded areas are driving businesses away. Businesses say they simply can't afford space to rent.
    There are just too many people, and all those people are trying to have homes, so businesses are having to compete with that.
    I know many former sprawling plant nurseries in Southern California have closed because the land they were on simply became too valuable and the owner of the land decided to cash out and sell it to a developer.

    I would strongly suspect residents in these areas are spending a (substantially) higher percentage of their income on housing than on local businesses than they did 30 years ago.
     
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  6. Thought Criminal

    Thought Criminal Well-Known Member Donor

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    There was a report that I really enjoyed. It had to do with a family farmer and the housing collapse.

    This guy sold some of his farmland to a developer for $10million. Before the developer did anything with the land, the crash happened. The developer found himself in need of cash, and sold the land back to the farmer for $1million. Meanwhile, the price of corn doubled.
     
  7. wgabrie

    wgabrie Well-Known Member Donor

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    Where are the new people going to work??? It sounds like over crowded and over populated areas are taking over.
     
  8. wgabrie

    wgabrie Well-Known Member Donor

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    Maybe it's a plan to move in poor people to diversify the neighborhood and vote Democrat.
     
  9. Kode

    Kode Well-Known Member

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    Are the new residential developments high-end?

    Your observations may be related to a broad economic change that is in progress. Due to shrinking buying power, people are buying more and more online, including food. It's often cheaper and the postage and handling fees are often eliminated. So stores and restaurants are closing. Meanwhile builders are looking for the top dollar on their work, so they are buying up cheap city properties and building high-end residences for the well-to-do. As you know, it's called "gentrification".

    All-in-all it's a sign and symptom of a growing crisis in capitalism. There are many signs but the media don't want to scare you. They want you to be the last to know.
     
    Last edited: Aug 11, 2018
  10. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    My theory is that each person is spending less disposable income, so that explains how there can be more people but fewer businesses.

    There was a video I was watching in which a man, who had lived in Los Angeles for several decades, was saying the types of businesses in his neighborhood had changed to.

    Not really, but they're not exactly affordable either. I don't know who exactly is going to live in them. From what I've seen it's mostly immigrants with moderately decent jobs (not on the lowest end) but apparently willing to settle with low expectations. A lot of the newest built condo developments have fairly high vacancy rates, but all the condos built maybe 7+ years ago are completely filled, because there's a housing shortage. A lot of the residents living in those condos struggle to afford them, so that explains why the newest built complexes have trouble attracting residents. They're now trying to squeeze in new developments in areas that were never designed for development, in narrow margins along high-traffic busy main streets where greenspace used to be.
    Parking is going to be a serious issue too, many of the residents of these new condos are having to park on the streets, which is creating parking shortages for all the other residents who live in the surrounding area. Because of this, many local neighborhoods near apartment complexes or new condo developments have passed ordinances banning parking along the streets.
     
    Last edited: Aug 11, 2018
  11. Kode

    Kode Well-Known Member

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    Sounds like some of what I've seen too, @kazenatsu .
     
  12. Reiver

    Reiver Well-Known Member

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    I don't have any common ground with folk supporting fascism.
     
  13. Kode

    Kode Well-Known Member

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    Great, but where's the fascism and who's supporting it?
     
  14. Reiver

    Reiver Well-Known Member

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    That you haven't realised shows your problem. Have a think!
     
  15. Kode

    Kode Well-Known Member

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    I have my list. I'm asking for yours. Attempts to attack me are not going to solve anything.
     
  16. Reiver

    Reiver Well-Known Member

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    I'm not attacking you. I'm tutting. For a leftist you really are guff. Knowing fascists is 101 surely?
     
    Last edited: Aug 14, 2018
  17. Kode

    Kode Well-Known Member

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    Call it whatever feeds your needs and comforts you. Declaring a person has a "problem" without discussing it with civility and an intention to be of assistance, is an attack. Maybe it's time for you to "have a think".
     
  18. Reiver

    Reiver Well-Known Member

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    I've known you from day 1. Up to you to actually become.
     
    Last edited: Aug 14, 2018

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