A major convention solves the Who-Where-When puzzle that all potential assassins must solve.
According to Statistica, in 2023 almost 50% of the conventions were planned for Orlando, Chicago, San Diego, Los Vegas, Atlanta, Denver, New Orleans and Washington D.C. Any throttling back of conventions will hammer the hospitality business and the landlords leasing to them.
For those who do not follow business news, commercial real estate is already on the ropes. Covid showed that much business could be transacted from a home office if you had a fast internet connection. Suddenly, businesses only needed 20%-to-40% as much floor-space for offices. Foot-traffic at down-town retailers and restaurants dropped proportionately
A major chilling of the convention and trade-show customers will be one more torpedo below the water-line for hotels, convention centers and restaurants in places like Orlando, Chicago and so-on. Valuations and tax-base will plummet in those cities.
ERJ, add to this the wonders of AI working hard to eliminate certain fields, and one has a deluge of potential empty office space.
ReplyDeleteI will say that even before this, at least in my industry, business travel was not what it once was in the earlier 2000's. We use to go everywhere to meet with a company or a potential vendor. That is seldom the case anymore.
Rent out the unused office space to the illegal ailiens...
ReplyDeleteOr housing for the homeless. That would solve the NIMBY problem.
DeleteHaving spent my share of time in the sorts of commercial real estate that is likely impacted, it is not really a solution. Large scale office space or purpose built commercial space will not work for anything more than very short term housing. It has facilities nor in some cases the needed utilities to support large numbers of people dwelling there.
DeleteI think CEO/COO types are pretty safe at conventions as long as they are not giving some type of address. Of the two Fortune 500 companies I worked for (spit), the CEO of the oil company never went to any and the instrumentation company never stayed more than a hour or two on the convention floor.
ReplyDeleteThe personal protective security industry may see a short term boost.