For example, the decline in office values is projected to cost the District of Columbia $464 million in combined tax revenue over the next three fiscal years. Similarly, San Francisco could lose $150 million to $200 million annually by 2028, about 5-6 percent of all current property taxes. In Boston, almost three quarters of its current total general revenues comes from property taxes; of that, more than half comes from commercial, industrial and tangible personal property (22 percent comes from office buildings alone). source 2023
My friend runs a property management company in NYC, he indicated to me - and we spoke for over an hour- that class A is protected but everything else is in the gutter and there's talks of a lot of real estate taking hits down to the land value etc... I forget the exact specifics, but it's certainly not riveting or enthralling for the commercial office Class B and Class C property owners.
Local government is heavily reliant on property taxes generally, but many entities diversify their revenue sources with income taxes, sales and excise taxes, and other levies, as well as non‐tax revenues. San Francisco anticipates $6.4 billion in revenue in fiscal year 2023–24. Of this total, $4.4 billion is expected to come from tax revenues. The combined city/county government levies a variety of taxes aside from the property tax, including sales tax, hotel room tax, utility user tax, parking tax, real property transfer tax, sugar sweetened beverage tax, and a unique tax on executive pay. Property taxes are expected to contribute $2.5 billion of the $4.4 billion of anticipated tax revenue. Since the current real estate valuation slump is only affecting certain categories of properties, it is also essential to understand how assessed value breaks down by category. According to San Francisco Assessor’s latest annual report, three major commercial property categories (office, retail and hotel) accounted for 27% of total assessments in 2021. This proportion slightly understates the share of property tax revenue derived from commercial property, because only residential property is eligible for a homeowners’ exemption. In California, this exemption is only $7,000 per owner occupied property and thus not as significant a factor as in Texas. Overall, San Francisco’s commercial property valuation decline places at risk about $700 million of annual revenue or about 11% of total general fund collections. It is easy to see how this proportion might vary across cities and counties. Suburban communities that are primarily residential are likely to have very little exposure to commercial valuations, while cities hosting large malls and office clusters should be at greater risk. Source
My belief is that it's going to have to continue to take a hit and bleed out a slow and expected repricing.
I find myself repeating 2 stats regularly about India.
100,000 kilometers a month of fiber optic added.
~12k to 15k 5G base stations installed monthly.
You can monitor the growth here: https://www.speedtest.net/global-index/india Furthermore, you have the following broadband projects coming online, completed, or in fast progress.
I like to check https://www.submarinecablemap.com/ periodically.
Here are the descriptions of the fiber optic cable projects with links to more information. I generated it with AI, I wish they'd hyperlink to their sources, oof.
PDSCN (Pacific Data Super Cable Network) - The PDSCN is a high-capacity fiber optic cable system that connects the United States to Asia, providing a critical link for international data traffic. The project involves the installation of thousands of kilometers of undersea fiber optic cables, requiring careful planning and execution to ensure reliable and high-speed data transmission.
2Africa- The 2Africa project is a massive undersea fiber optic cable system that will connect Africa, Europe, and Asia, spanning over 37,000 kilometers. This project aims to provide high-speed internet access to millions of people in Africa and beyond, promoting digital inclusion and economic growth.
Equiano-The Equiano project is a subsea fiber optic cable system that will connect Europe, Africa, and Asia, with a total length of over 15,000 kilometers. This project is designed to provide high-capacity and low-latency connectivity, supporting the growing demand for internet services in these regions.
Gati Shakti - The Gati Shakti project is a national fiber optic cable network in India, aimed at providing high-speed internet access to rural and urban areas. This project involves the installation of thousands of kilometers of fiber optic cables, requiring careful planning and execution to ensure reliable and high-speed data transmission.
Coral Bridge - The Coral Bridge project is a fiber optic cable system that connects the Pacific Islands, providing critical telecommunications infrastructure to these remote communities. This project involves the installation of undersea fiber optic cables, requiring specialized equipment and expertise to ensure reliable and high-speed data transmission.
KT-Telin - The KT-Telin project is a joint venture between Korean and Indonesian telecommunications companies to build a fiber optic cable system connecting Korea and Indonesia. This project aims to provide high-capacity and low-latency connectivity, supporting the growing demand for internet services in these regions.
Te Waipounamu- The Te Waipounamu project is a fiber optic cable system that connects New Zealand's South Island, providing high-speed internet access to rural and urban areas. This project involves the installation of thousands of kilometers of fiber optic cables, requiring careful planning and execution to ensure reliable and high-speed data transmission.
Bulikula and Halaihai- The Bulikula and Halaihai projects are fiber optic cable systems that connect the Pacific Islands, providing critical telecommunications infrastructure to these remote communities. These projects involve the installation of undersea fiber optic cables, requiring specialized equipment and expertise to ensure reliable and high-speed data transmission.
Digicel- The Digicel project is a fiber optic cable system that connects the Caribbean region, providing high-speed internet access to island nations. This project involves the installation of undersea fiber optic cables, requiring careful planning and execution to ensure reliable and high-speed data transmission.
Humboldt- The Humboldt project is a fiber optic cable system that connects the west coast of South America, providing high-capacity and low-latency connectivity. This project aims to support the growing demand for internet services in these regions, promoting digital inclusion and economic growth.
KLI (Kochi)- The KLI project is a fiber optic cable system that connects India's Kochi region, providing high-speed internet access to urban and rural areas. This project involves the installation of thousands of kilometers of fiber optic cables, requiring careful planning and execution to ensure reliable and high-speed data transmission.
This is a wrecking ball to working in the office. Few truly high agency software developers love showing up to the office. The offices and the landlords have to accommodate for the future.
Unless you've got meals, gyms, trainer, a sauna, and a ton of dogs, I see no reason people who have left the office will rejoin to have a commute when they can literally work from anywhere.
Furthermore, there's the issue of new and onerous EEOC mandates.....
