re: A debt 'time bomb' looms for New Orleans' downtown office market

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This is one of those scenarios where deflation is ultimately necessary, but the initial pain will hurt severely due to the debt relied upon.

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Deflation is when there's low demand but high supply, this usually occurs because of rising unemployment causing consumers to purchase fewer items. The economic scenario we're in now has consumers trying to fight inflation by tapping their savings while also charging historic highs to credit cards (which have historically high interest rates). Real wages are sluggish and more and more consumers are going into delinquency (including 90+ days, which is usually a default).

All of this is to say that for enough deflation to happen to help those businesses, it would mean the economy is already in a massive shitter to the point where it may harm the business' ability to pay. In other words, the cure may do more damage than the disease.

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The economic scenario we're in now has consumers trying to fight inflation by tapping their savings while also charging historic highs to credit cards

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This is causing

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Deflation is when there's low demand

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That's the inter-relation between inflation and deflation. CRE is too expensive and demand is decreasing. Prices need to decrease due to these market forces, but the issue is the debtload won't allow that easily.

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All of this is to say that for enough deflation to happen to help those businesses, it would mean the economy is already in a massive shitter to the point where it may harm the business' ability to pay. In other words, the cure may do more damage than the disease.

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The other option is publicly-financed inflation via class-specific protectionism.

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Client's aren't hiring a law firm that has a shite office.

Perception matters.

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Not to me. Material things don't impress me. I've hired 3 lawyers in my life. The most expensive with the fanciest office is the one that accomplished nothing for me. Judging by his work, he spent 15 minutes on my case. The 2 with moderate offices and a single secretary did what I needed quickly. One even did excellent follow up work years later for free.

If I was looking at a huge lawsuit or serious criminal case, then maybe I'd go with the expensive lawyer. For most things, though, you will just be wasting money.

As for New Orleans, we just need to stop burning money and let the city die. Unless you clean out the ferals, it won't improve.