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Tangentially related: I wonder what will happen in SF/NYC when more of the office leases have expired and the corporate property tax base erodes? How will the c

by jacobn 4y ago

Tangentially related: I wonder what will happen in SF/NYC when more of the office leases have expired and the corporate property tax base erodes? How will the cities fund themselves? Presumably by hiking residential tax rates and converting office space to residential, but the latter could take a long time…

mistrial9 4y ago
the last City and County of San Francisco budget I was aware of, was more than $1B for one year.. that is 'B' billion. And, good luck with your accounts receivable invoice for services rendered, small business.. more than one year to settle on a contracted service worth about $600k at the time, with no disputes. first hand story do not hold your breathe waiting for SF/NY to run out of money somehow
mistersquid 4y ago
> I wonder what will happen in SF/NYC when more of the office leases have expired and the corporate property tax base erodes? Large metropolises will manage potential budget shortfalls how they will. More importantly, after large commercial leases expire, commercial property owners and their management companies will adjust their commercial rents until companies and institutions find value. While some concerns go remote-only, others will implement hybrid or even full RTO. The price and associated tax revenue on these commercial leases will stabilize and, more than likely, increase as the economy increases. The expiration of corporate leases will not usher municipal financial apocalypse as many observers seem to speculate. Rental market corrections unavoidably will lag pandemic economic contraction (leases take time to expire) and such contractions hardly signal the end of commercial and corporate interests in renting urban real estate.
- diogenescynic 4y ago
  Your comment is entirely wrong (and flippant). Basically every assumption you made is actually the opposite.

by jacobn 4y ago

mistrial9 4y ago

the last City and County of San Francisco budget I was aware of, was more than $1B for one year.. that is 'B' billion. And, good luck with your accounts receivable invoice for services rendered, small business.. more than one year to settle on a contracted service worth about $600k at the time, with no disputes. first hand story do not hold your breathe waiting for SF/NY to run out of money somehow

mistersquid 4y ago

> I wonder what will happen in SF/NYC when more of the office leases have expired and the corporate property tax base erodes? Large metropolises will manage potential budget shortfalls how they will. More importantly, after large commercial leases expire, commercial property owners and their management companies will adjust their commercial rents until companies and institutions find value. While some concerns go remote-only, others will implement hybrid or even full RTO. The price and associated tax revenue on these commercial leases will stabilize and, more than likely, increase as the economy increases. The expiration of corporate leases will not usher municipal financial apocalypse as many observers seem to speculate. Rental market corrections unavoidably will lag pandemic economic contraction (leases take time to expire) and such contractions hardly signal the end of commercial and corporate interests in renting urban real estate.

diogenescynic 4y ago
Your comment is entirely wrong (and flippant). Basically every assumption you made is actually the opposite.