The fiscal toll of the pandemic is only beginning to reveal itself. The challenges presented to growing office vacancy rates are not unique to San Francisco.
A new analysis published by the office of San Francisco Chief Economist Ted Egan estimates the property tax revenue risk of ongoing office vacancies in the city at $200 million by 2028.
Romy Varghese shares news of the analysis for Bloomberg, explaining that office vacancies in the traditional tech hub could rise to as much as 31 percent in the fourth quarter of next year. According to an October article on Socketsite, San Francisco reached 23 percent office vacancies in the second quarter of 2022.
“Commercial property values would fall, and that would mean less revenue for the city from property taxes. In the short-term, the risk is lessened by long-term leases and the fact that under a California law known as Proposition 13, valuations for property tax purposes are often well below market prices. That cushions municipalities during downturns,” writes Varghese.
The office sector is responsible for 18 percent of the city’s revenues, according to Bloomberg.
San Francisco has emerged as the poster child of cities faced with the fiscal consequences of new work from home trends in the wake of the Covid-19 pandemic, but it’s not the only city faced with similar concerns in the United States, though the office vacancy equation varies by the location.
FULL STORY: San Francisco Sees Risk of Lost Revenue as Remote Work Prevails
Downtown San Francisco Still Looking for a Post-Pandemic Comeback
“Downtown on the Brink” reads the headline of a recent San Francisco Chronicle feature.
The Once-in-a-Generation Opportunity to Remake Downtown
Urban cores around the country were transforming into live, work, and play destinations before the pandemic. The pandemic was a setback for this transformation, but it could also be a rare opportunity. It’s up to city leadership to seize it.
Planning Year in Review 2022: Downtowns, Transportation, Climate Change
Part two of a review of the major themes, debates, and events of the year in planning that was 2022.
Florida Considers Legalizing ADUs
Current state law allows — but doesn’t require — cities to permit accessory dwelling units in single-family residential neighborhoods.
HUD Announces Plan to Build Housing on Public Lands
The agency will identify federally owned parcels appropriate for housing development and streamline the regulatory process to lease or transfer land to housing authorities and nonprofit developers.
Conservatives’ Decongestion Pricing Flip-Flop
When it comes to solving traffic problems, the current federal administration is on track for failure, waste, and hypocrisy.
Can Geothermal Energy Fuel Hawaiʻi’s Future?
Gavin Murphy, a New Zealand-based consultant with experience in indigenous-led geothermal projects, argues that Hawaiʻi is poised to achieve energy independence and economic growth by respectfully developing its untapped geothermal resources.
Climate Gardening: Cultivating Resilient Landscapes in Los Angeles
TreePeople’s 4th Annual Urban Soil Symposium explored how climate gardening, soil health, and collaborative land management strategies can enhance urban resilience in the face of climate change.
Electric Surge: EV Chargers Outnumber Gas Nozzles in California
California now has 48% more electric vehicle chargers than gasoline nozzles, reflecting its rapid shift toward clean transportation and aggressive zero-emission goals despite federal pushback.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Florida Atlantic University
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
City of Piedmont, CA
NYU Wagner Graduate School of Public Service
City of Cambridge, Maryland