57 sats \ 7 replies \ @kepford 3 Sep \ on: Revaluation Of The Real Estate Sector Would Be Key To Social Stability econ
Your post reminded me of this story I shared a few minutes ago. Commercial real estate is not finished being corrected. It may take many years for that to happen but it will happen. I just wonder how long until companies start dumping their nearly empty office spaces. We have seen the impact in places like NYC and SF but I don't think its over.
They're likely going to dump it as soon as their current contracts are up. It's also not just companies. A lot of the government workforce went remote during the pandemic and has remained that way, which led to an enormous amount of empty office space.
Both government and businesses with surplus office space have been scrambling to sublet and repurpose those spaces, because they're taking enormous budget hits every month.
reply
reply
Are they permanently remote now?
I thought most were returning to the office, at least part time in the office
reply
reply
I can only really speak to what's going on with government economists, since I don't know anyone else who works for the government.
At least one agency in DC is making them go back to the office. Ironically, the agency I heard about had already gotten out of it's office lease, so they had to move into vacant office space well outside the city.
I know of at least one other agency that's remaining remote, while continuing to pay for an enormous amount of unused office space.
reply
It might not correct if the government decides to dump money into propping up the valuations.
reply
Property tax is local (city and county)
California has capital gains tax, which is lame at the state level. Lame at the federal level too
reply