The commercial real estate market is on the verge of a major shift as distressed office spaces face a wave of fire sales, presenting opportunities for conversion into residential units. With vacancy rates rising and banks tightening lending, cities like New York and Los Angeles are leading the charge in repurposing these properties to address housing shortages. This episode explores the challenges and innovative solutions in the commercial real estate sector, highlighting the potential for a billion square feet of new housing supply.Sources:https://www.businessinsider.com/commercial-real-estate-office-outlook-fire-sales-apartment-conversions-housing-2024-10https://finance.yahoo.com/video/commercial-real-estate-market-normalization-221203682.htmlhttps://www.ocregister.com/2024/10/12/executing-a-purchase-escrow-in-commercial-real-estate/https://www.aspendailynews.com/news/basalt-commercial-space-gets-live-work-classification/article_9a380c86-8871-11ef-83fa-3f44c770285b.htmlOutline:(00:00:00) Introduction(00:00:42) America's offices are about to see a wave of distress that could result in a billion square feet of fresh housing supply(00:03:41) The commercial real estate market is in a 'normalization period'(00:06:03) Executing a purchase escrow in commercial real estate(00:08:34) Basalt commercial space gets live-work classification