Posted 2/25/2024, 10:15:00 AM
NYC Commercial Real Estate Crisis Threatens City Budget and Services
- Vacancy rates for NYC offices at record highs, hemorrhaging money and shrinking tax base
- Billions in commercial real estate loans coming due, defaults rising, affecting property values and tax revenue
- Loss of tax revenue from commercial properties hurts city budget for transit, sanitation, public safety
- Overexposed smaller banks facing pressure from falling property values, less lending
- Self-perpetuating "doom loop" with less public spending making city less attractive, spurring more vacancy
