Does anyone have any idea what the expected life of a modern sky-scraper (constructed in the last 10 years) is if it is properly maintained? If it is not maintained?
Unfortunately, the real life span of a skyscraper is the duration of its
positive cash flow to the developer. As most of these buildings are
depreciated, when the depreciation allowance ends (usually 7 years) their
cash flow slows down and they are often sold. Unless the economy is booming
and the buildings are fully rented, they are sold to another developer who
can depreciate them again. If a building has deteriorated, it must then have
a "mid-life" rehab. Depending on zoning regulations in effect when the
building was constructed, the rehab may be quite extensive. Or, if the
zoning regulations have improved (for the developer), and a developer can
build a bigger buuilding, it may be demolished. Often stone and steel last
much longer than money thus cash flow becomes the controlling factor in the
life of a skyscraper.
Remember, a skyscraper represents a great risk to a developer and is usually
not completed for 3-4 years after a developer gets the idea to build because
of a "hot" market. Think about the skyscrapers that were started in 1929
because the market was hot and then completed in 1931 in great haste. That
is why we had the "Empty Space Building" instead of the Empire State Building.
Most New York skyscrapers started in 1929 were not "solvent" until World War
II and their "occupation" by the U.S. Government.