In bubble markets like Florida and others they started converting new condo projects into apartments at the opening since the market for high end condos was overbuilt.

Now there are the big empties which are the real problem that threatens to trash RE values further, big condo projects built on dreams of the RE bubbles continueing and pipedreams of getting $2M a unit, as if there are enough responsible buyers to fill so many.

Since these have been dumped on the banks, and in turn end up dumped on the market, they go for 50% or less on the dollar, leaving rooms for a good rental opertor to convert them.

This in turn stimulates the local economy and puts a bottom in on commercial RE values, averting a complete meltdown. For a midrange rental project, it might be the equivalent of $900 apartments going for $800, which could fill them faster bringing in cash flow sooner so they could finance the next big empty conversion.

Since rentals skyrocketed during this artificial government meddling induced RE bubble, and have failed to come down to sustainable trendlines, the average $1050 rent seems too high and is a gouge. That means there is room in the economy to bring that down some to adjust out the bubble pricing, and that the markets might support a good number of the big empties getting filled by rentals.

It is that or hyperinflation and urban blight problems those big empties will give us, I fear, and if they try to get the government to further spike rents screwing your worker who rents even more, good luck with your RE investment crap, that would just put a big empty overhang over commercial RE that could tank values further, and might just lock prices in the junkyard.

Then we can sit there and watch all those luxury condo buildings rot, oh what fun.

GLTAL.