Office buildings are sitting half-empty as remote work refuses to die, and cities are desperately trying to solve the problem.
They’re fast-tracking zoning changes and offering tax breaks to turn these dead towers into apartments, pushing conversion projects to their highest levels in decades.
This creates a clear opening for investors to grab discounted office properties in cities with conversion incentives.
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Meanwhile, a different kind of distressed property is finally clearing out after years of rot.
Zombie foreclosures dropped 39% last quarter and 54% from last year as courts and servicers work through the backlog.
The 46,000 homes still stuck in limbo—concentrated in D.C., Nevada, and Illinois—are now hitting auction blocks at an accelerating pace.
In this edition of the AltReports:
🏢 Office vacancies hit record highs nationwide
💀 46K zombie homes stuck in foreclosure limbo
📉 33% of Manhattan sellers took a loss
⚠️ Retail and hotels start cracking under pressure
😨 Renters bleeding 33%+ of income on rent
🔴 7% mortgage rates freeze buyers and sellers
Video of the Week: Landlords Just Broke the Rental Market
Chart of the Week: Which State Economies are in a Recession
Podcast of the Week: The Real Estate Deals Everyone Ignores (Make $500K in 18 Days)
Empty Offices Spark a Conversion Frenzy
Office buildings sit half-empty with vacancy near record highs as remote work refuses to die.
Cities are fast-tracking zoning changes and tax breaks for adaptive reuse, sending conversion projects to their highest levels in decades.
💡 Investor Takeaway: Go after discounted office buildings in cities offering conversion incentives.
Zombie Foreclosures Plunge, Distressed Buyers Gear Up
Zombie foreclosures are still a mess with 46,000 homes – 0.41% of single-family inventory – stuck in limbo, led by D.C., Nevada and Illinois.
Those corpse piles shrank 39% from last quarter and 54% from last year as courts and servicers finally start clearing the backlog.
💡 Investor Takeaway: Keep your eye on auctions in top zombie states
One in Three Manhattan Condo Owners Lost Money Selling Last Year
One in three Manhattan condo owners took a loss when they sold their units in the past year.
That’s up from one in four last year, showing the market is sliding as buyers bail on sky-high prices.
💡 Investor Takeaway: Keep your powder dry for the incoming fire-sale condo listings.
US Commercial Property Distress Slowed in Q2 but Offices Keep Collapsing
US commercial real estate trouble keeps rising—offices are imploding and retail and hotels are starting to crack.
But distress growth cooled in Q2, prices are leveling off and rating downgrades have finally tapered.
💡 Investor Takeaway: Target deeply discounted office blocks and struggling retail locations.
Renters Are Getting Crushed as Affordability Implodes
Renters are bleeding over a third of their paychecks on rent, and the math just doesn’t add up.
With new construction lagging and stagnant wages, defaults and evictions are primed to spike.
💡 Investor Takeaway: Research high-rent markets for off-market foreclosure deals
Housing Gridlock and Office Exodus Fuel a Distress Wave
Home buyers and sellers are frozen in place by 7% mortgage rates, and office towers are half-empty thanks to remote work.
Banks are slamming the brakes on lending and housing stock is piling up as refinances dry up.
💡 Investor Takeaway: Banks are starting to dump residential and commercial assets at steep discounts.