Daunting for major cities

[HALL85]

https://www.reuters.com/article/us-...s-companies-start-cutting-space-idUSKCN24N2NL

The result will be even higher taxes for those that remain. As technology continues to be embraced for remote work, it may not be something these cities will be able to recover. Add to the decline in quality of life, safety, etc.

 

[Pirata]

A few weeks back I posted that New York City was toast.

Whil it's the last thing I would ever want having been born there I just don't see how they can make it if this trend continues.

I don't profess to know the finances of the city budget but I got to think a lot of it is based on real estate taxes and those will be going south once leases expire.

Even if things open up with the increase in violence I have to think it will reduce the amount of people willing to visit.

Revenue from theaters, arenas, museums, restaurants, and anything else will all be drastically down.

The toll revenue from tunnels and bridges is and will be down.

Busting Subway ridership is way down and I don't see it picking up in the near or even mid to long-term.

I don't think you'll be able to solve it by simply raising taxes or fares.

 

[NYShoreGuy]

A dedicated central office space is a 20th century mindset, it is dated

 

[NYShoreGuy]

A dedicated central office space is a 20th century mindset, it is dated

 

[HALL85]

A few weeks back I posted that New York City was toast.

Whil it's the last thing I would ever want having been born there I just don't see how they can make it if this trend continues.

I don't profess to know the finances of the city budget but I got to think a lot of it is based on real estate taxes and those will be going south once leases expire.

Even if things open up with the increase in violence I have to think it will reduce the amount of people willing to visit.

Revenue from theaters, arenas, museums, restaurants, and anything else will all be drastically down.

The toll revenue from tunnels and bridges is and will be down.

Busting Subway ridership is way down and I don't see it picking up in the near or even mid to long-term.

I don't think you'll be able to solve it by simply raising taxes or fares.

Agreed. These are long term problems that are so difficult to turn around. Broadway may not even come back in 2021 and the long term ripple effect on tourism is going to be significant. Restaurants, hospitality, etc. I don't think they have any idea how bad it is going to get. I don't wish ill-will either, but NYC and San Francisco, especially are going to take a beating.

I know its anecdotal, but my daughter and her fiancé who live in Brooklyn put bids on two homes this week (Bloomfield and Montclair). One had 30 bids (they came in second) and one had 45. Almost exclusively all from NYC. Everything is going for well over what is being listed.

 

[Section112]

I've been running a company that has worked remotely for 20 years. We decided to lose our office back then, kept our fixed costs low and never looked back. People can work from anywhere. Certain businesses will lose brain power and teams working together on certain issues. Other businesses don't need that.

The housing market is going crazy outside of NYC, Boston, Philly etc for young millenials and Gen Xers that are moving out of the cities right now and the mortgage rates are helping a lot. Good time to own residential real estate in the burbs. Bad time to own commercial real estate especially in a city.

 

[shu09]

I've been running a company that has worked remotely for 20 years. We decided to lose our office back then, kept our fixed costs low and never looked back. People can work from anywhere. Certain businesses will lose brain power and teams working together on certain issues. Other businesses don't need that.

The housing market is going crazy outside of NYC, Boston, Philly etc for young millenials and Gen Xers that are moving out of the cities right now and the mortgage rates are helping a lot. Good time to own residential real estate in the burbs. Bad time to own commercial real estate especially in a city.

What industry are you in?

 

[SHUHoopsFan]

Agreed. These are long term problems that are so difficult to turn around. Broadway may not even come back in 2021 and the long term ripple effect on tourism is going to be significant. Restaurants, hospitality, etc. I don't think they have any idea how bad it is going to get. I don't wish ill-will either, but NYC and San Francisco, especially are going to take a beating.

I know its anecdotal, but my daughter and her fiancé who live in Brooklyn put bids on two homes this week (Bloomfield and Montclair). One had 30 bids (they came in second) and one had 45. Almost exclusively all from NYC. Everything is going for well over what is being listed.

I’m worried about the housing market. This could lead to a ton of foreclosures in a few years if the economy doesn’t get back on track.

 

[hbkmyr]

I’m worried about the housing market. This could lead to a ton of foreclosures in a few years if the economy doesn’t get back on track.

Probably sooner than that.

 

[HALL85]

I’m worried about the housing market. This could lead to a ton of foreclosures in a few years if the economy doesn’t get back on track.

I don't have the stats to support, but it seems a lot of these residential properties that are going for over what they are appraised, are cash deals. Tough to foreclose when there's no mortgage.

 

[SHUHoopsFan]

I don't have the stats to support, but it seems a lot of these residential properties that are going for over what they are appraised, are cash deals. Tough to foreclose when there's no mortgage.

If they're cash deals great. All it's doing is raising property values.

 

[hbkmyr]

I don't have the stats to support, but it seems a lot of these residential properties that are going for over what they are appraised, are cash deals. Tough to foreclose when there's no mortgage.

Its tough to tell without know what's behind a cash deal. Are these buyers wiping out savings and make themselves vulnerable to sustain unemployment with no reserve? Also, not uncommon to make a cash offer to stand out and get a delayed mortgage. Over 5 million homes were sold in US last year. 41,000 were cash deals. There's still plenty of mortgages out there to affect the market greatly.