• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Thursday, May 8
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»The crashing office market will deepen the economic ‘doom loop’ for America’s cities, economist says
Finance

The crashing office market will deepen the economic ‘doom loop’ for America’s cities, economist says

September 12, 2023No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
The crashing office market will deepen the economic 'doom loop' for America's cities, economist says
Share
Facebook Twitter LinkedIn Pinterest Email
Chicago Skyline

Midsized cities could see higher tax rates and plunging property values as office demand falls.Jeff Gentner/Getty Images

  • Some of America’s largest cities risk falling into an economic “doom loop.”

  • Cratering demand for office space will exacerbate problems for US cities, one Columbia economist says.

  • Midsized cities could see higher tax rates and plunging property values as office demand falls.

Some of America’s largest cities could be on the verge of an economic “doom loop” thanks to the crashing office real estate market, according to one Columbia economist.

Stijn Van Nieuwerburgh, a real estate and finance professor at the Columbia School of Business, has sounded the alarm for months on large to mid-sized US cities. That’s thanks to work-for-home trends, which have battered the commercial real estate market in hubs like Atlanta, Chicago, and Denver.

Those cities are now seeing some of the highest office vacancy rates in the US, Nieuwerburgh said in a recent report, and office vacancies across the US have hit an all-time-high this year, according to an estimate from the National Association of Realtors.

The economic repercussions of that development could be dire, Nieuwerburgh said, since property taxes are a major source of income across of the US. Property taxes for as much as 40% of total tax revenue in some states. Office taxes alone could account for as much as 10% of total tax revenue, he estimated.

“If those offices lose about half of their value, tax revenues fall, and that creates a huge hole in the budget,” Nieuwerburg warned in an interview with CNBC last week. “The problem that smaller cities have is that, often, there’s not a whole lot of other things that cities have to offer in their downtown areas besides the commercial office district. So when that office district starts to falter, it sort of affects the entire city,” he later added.

See also  Mr. They/Them's 'Flash' Takes a Box Office Crash

That could result in higher tax rates and property value declines in affected cities, with office building prices potentially plunging 35%, according to some estimates. Banks with high exposure to office debt could also run into trouble, as there’s around $600 billion in office building debt that’s “potentially in trouble,” Nieuwerburg estimated.

Experts have warned for months of trouble in the overarching commercial real estate sector, which has struggled to bounce back from the pandemic. That’s being exacerbated by the crunch in credit conditions, with banks already starting to pull back on lending and reportedly looking to dump their commercial real estate debt.

Read the original article on Business Insider

Americas cities Crashing deepen Doom Economic economist Loop market Office
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump’s Tariffs Trigger Turmoil In China As Country’s Economic Tailspin Intensifies Per New Data

May 6, 2025

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025

Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

April 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Eagles Player Robbed, Assaulted at Gunpoint amid Crime Wave

March 11, 2023

Biden’s Top 3 Gaffes and Awkward Moments in Ireland: ‘Go Lick the World’

April 19, 2023

Isaac McKean Scarborough on Moscow’s Heavy Shadow in Tajikistan

December 26, 2023

Director Greta Gerwig Says Plans for ‘Barbie’ Sequel Are ‘At Totally Zero’

July 27, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Queen’s ‘Fat Bottomed Girls’ Excluded from Children Audio Platform

August 21, 2023

Boeing to set up 737 freighter conversion facility in India

March 11, 2023

University Of Georgia Football Team Declines Invitation To White House

May 10, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.