Downtown Real Estate Values Destroyed

[Joe Splitrock]

What are the long term effects going to be of the arson, looting and vandalism in downtown areas across America? Businesses were already in financial trouble. Now struggling businesses received the final blow. What effect will that have on commercial real estate values? Beautiful cities were trashed and it will take years to rebuild some of them. People feel unsafe and their neighborhood is destroyed.

How do malls and retail recover? How many people will choose to move to suburbs or smaller towns? Rebuilding costs money, so what effect will this have on insurance rates and taxes? What does this all mean for real estate investors as we evaluate risk?

[Randy Bloch]

this could spur redevelopment of some areas that is really needed it, but wasnt happening for one reason or another.  Some of these big box retail spaces in the urban core have huge land footprints that can be redeveloped into some much more urban friendly areas.  we have huge affordable housing issue in in Minneapolis so maybe some mixed use development that are more than one story high...some of the old urban core was not that well designed.  This could be great opportunity to better utilize the land, make it more urban friendly and add housing.  There will be positives to this.