Looming shortfalls in CRE valuations, and a lower daytime population in central business districts, pose a threat to city budgets, which tend to rely on property and sales taxes. For some cities, the numbers are challenging. But, a new report from Standard & Poor's argues that with prudent budgeting and an influx of cash from climbing residential property values, cities can avoid the worst of the impending damage stemming from CRE revenue falls — for now, at least. Many cities ought to be able to adjust to the lingering impact of the pandemic on downtown populations, S&P said in its report. “Even if they are experiencing significant pressure in the commercial real estate markets, large cities do have some protections and some time to formulate a response,” S&P Director and lead analyst Scott Nees told Bisnow. 
The report notes that the fiscal pressure on cities comes in the form of a “trifecta” stemming from the widespread adoption of remote work: falling CRE valuations, reduced tax collections in urban cores and damage to the financial health of public transit systems.The challenges are nationwide. New York is facing…  Read the full story here. | 
