In this article, you'll learn:

• The impact of falling office valuations on cities and local tax revenues.
• How underutilized office spaces are affecting urban economic growth.
• Cities most at risk due to reliance on commercial property taxes.
• Potential solutions for empty offices, including conversions and tax hikes.

Office attendance is lingering around 30 percent lower than it was pre-pandemic. Rampant low utilization reflects the elephant that’s (not) in the room: What is the country going to do with its empty office space problem?
Because the scope of the issue has expanded beyond being solely a concern for commercial landlords.
A dip in office valuations translates to lower tax revenue, straining the ability of municipalities to maintain and enhance public services...but we’re not really talking about a “dip” here, are we? Most recent estimates predict a full-on 44% decline in office valuation in major metros, underscoring the profound level of distress we may be in for.
And with billions of dollars in CMBS loans coming due in upcoming years, trouble in the office sector is spilling over into the country’s economic landscape as a whole. Let’s discuss how falling office valuations signal more potential distress and which areas are at higher risk of feeling the consequences.