This financial model is also the main reason why it's so hard to convert these buildings to residential. Somebody has to eat the markdown.
185 karma · joined June 19, 2007
e-mail: $USER@$USER.nl
This financial model is also the main reason why it's so hard to convert these buildings to residential. Somebody has to eat the markdown.
Commercial leases are often for say 5+5 years, so once you lock it in, you know for sure what the property revenue is going to be for the next so many years. Your uncertainty equation has collapsed.
I think the main insight here is that commercial real estate is an entirely different animal than the residences that you may be used to.
You can apply this same reasoning to the "back to the office" pushes done on behalf of the institutional investors who have exposure to large commercial properties in inner cities. That too is a financial house of cards built on assumptions and vibes.
Given that we have 2+ in each high street in Berlin, it seems it's not that difficult.
Congratulations, you have just described high finance.
This looks like a good step in that direction.
I'm guessing this is not the first time this happened to them.
It was a great foundation and has served me well to this day.
The EU Should force them to do this.
For all the academic interest the language has, it seems very few of those people want to do anything foundational to make the language more ergonomic and more relevant.
In Germany for instance I've seen many a company that treated their programmers as a cost center and they actually were (probably a mutually reinforcing self-fulfilling prophecy).
Too many instances of programmers being deployed in such a way that I couldn't possibly see a way that they would get back even that meagre investment that was being made. Fully irrational dev teams doing useless busy work.
Most German "startups" used to be replaceable with Zapier and Pipedrive. That has probably only gotten worse with the advent of LLMs.
"You can do IO now." So what? I could do IO before that as well.
Very rarely are practical explanations discussed. Even if they are discussed, the treatment is shallow and useless.
For the people who want to do their work and get on with their life, it does not really matter that much.
18 years is a good run as far as these things go.