Downtown office buildings around the country are selling for much lower prices than before the pandemic, prompting questions about the future of central business districts.
The sharp rise in office vacancies — and attendant drops in value for office buildings — could be worse than it appears, according to Professor Stijn Van Nieuwerburgh, who spoke with Governing’s Alan Greenblatt about the issue.
According to Van Nieuwerburgh, this is because “vacancy rates aren’t showing the whole picture, since there are still lots of leased offices that aren’t occupied or are under-occupied” as tenants wait out long-term leases, Greenblatt explains. Meanwhile, lower building values and higher mortgage rates mean that for many owners, it’s more profitable to walk away.
Van Nieuwerburgh warns that this slow-moving crisis will lead to a reduction in property taxes for cities. “In my view, we have permanently lower demand for office stock that is built on valuable land, so something else is the highest and best use for that land. The only option is to repurpose those buildings or that land.” However, Van Nieuwerburgh estimates that only 15 percent of office buildings are appropriate for residential conversion.
FULL STORY: Empty Downtowns Are Still Depleting Local Coffers
How the Post-Covid Reality Is Reshaping Central Business Districts and Urban Centers
U.S. cities are working to redefine their downtowns in response to the “donut effect:” people and businesses abandoning city centers and flocking to suburban areas and beyond.
Office Conversion Sees No Sign of Slowing
The adaptive reuse of office buildings for residential and other uses will grow by as much as 63 percent in 2024 over last year.
Denver Voters Approve Downtown Revitalization Bonds
The city wants to bring new projects and residents to the downtown core, where 13 million feet of vacant office and retail space await new tenants.
National Parks Layoffs Will Cause Communities to Lose Billions
Thousands of essential park workers were laid off this week, just before the busy spring break season.
Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50
A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.
Delivering for America Plan Will Downgrade Mail Service in at Least 49.5 Percent of Zip Codes
Republican and Democrat lawmakers criticize the plan for its disproportionate negative impact on rural communities.
Test News Post 1
This is a summary
Test News Headline 46
Test for the image on the front page.
Balancing Bombs and Butterflies: How the National Guard Protects a Rare Species
The National Guard at Fort Indiantown Gap uses GIS technology and land management strategies to balance military training with conservation efforts, ensuring the survival of the rare eastern regal fritillary butterfly.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
EMC Planning Group, Inc.
Planetizen
Planetizen
Mpact (formerly Rail~Volution)
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research
NYU Wagner Graduate School of Public Service