WSJ article on office supply. Reporting suggests that office glut origins may have began during the Reagan Era. The pandemic merely exacerbated issues. Thoughts?
[Here](https://archive.ph/Rh2G0) is a version of the article titled "America’s Office Glut Started Decades Before Pandemic."

The reporting was informed by analysts, brokers, and investors.

The reporting suggests that some elements germane to office vacancies include:

* Federal tax breaks during the Reagan Era (accelerated depreciation for commercial properties) spurred office development
* Low interest rates
* Office demand from unprofitable startups, including WeWork
* Lack of conversions of old, vacant office buildings
* Inflated rents, but generous tenant improvement allowances and inducements, obfuscated underlying office demand

What are your guys' thoughts on office supply?
[{"id": "illng30", "text": "Interesting take. I do think we\u2019re seeing a fundamental shift in alot of markets. Highest and best use for most of these buildings is multifamily conversion - my firm is pursuing this strategy. But it\u2019s tough to find the lenders for it in this environment and the complexity / cost is extremely high (compared to building new type 1 construction).\n\nSan Francisco has Prop M which limits new office construction to prevent over supply. Prior to the pandemic office vacancy was like 2%\u2026 highest rents in the country. Now it\u2019s 20+ and probably trending to 40%.", "replies": [], "depth": 1}]