NYC commercial real estate facing record vacancies, low occupancy: 'People are not coming back'

During an interview on "Mornings with Maria" Friday, Peebles Corporation founder and CEO Don Peebles weighed in on the volatile housing market, arguing that New York City is suffering from a record-breaking number of commercial office vacancies because businesses are moving to "low tax environments."  

DON PEEBLES: All cities aren't created equally. New York City has changed dramatically. People are not coming back into their offices. And as a result of the decline in commercial office space, demand, is very significant. Record-breaking vacancies, record-breaking low occupancy numbers, and that's affecting, of course, the retail around it and businesses that depend on that. But then if you look and say Miami, where Citadel just announced last week or the week before that they're moving their whole company to Miami and other firms are moving. 

Sidley Austin just opened up a Miami office or announced that they were going to do that. Their demand is significant. In fact, our company is working on developing two office buildings in Miami Beach because there's such a great demand. Rents have risen there significantly. So those are the tales of two different cities, and that's happening across the country. Basically, businesses are going to be pro-business, lower-cost environment with low tax environments and where people want to live. And where the governments are responsive to business. And I think that that will continue. 

MORTGAGE RATES ADD TO RECESSION WOES

WATCH THE FULL INTERVIEW HERE: