Stress on office real estate testing some local governments' budgetary resilience

Virtual Event

Click to register for the on-demand.
Click to register for the on-demand.

Moody's analysts will provide insights on how the increase in remote and hybrid work has fundamentally changed the office real estate market. Some office properties have changed hands at small fractions of assessed values and prices at which they traded only a few years ago. Local governments with concentrations of office properties and high dependence on real estate taxes will be challenged to keep their finances balanced as office values decline.

Discussion topics include: 

  • The impact of office valuation declines varies from market to market, with less pronounced effects in regions experiencing population and office-based employment growth 
  • Upcoming property assessment cycles will provide greater transparency on overall assessed value impacts
  • Stress testing shows most cities expected to be fiscally resilient, with pockets of vulnerability
  • Governments with concentrations of vacant offices and limited tax rate flexibility will be most challenged to maintain fiscal balance
  • Speakers keyboard_arrow_down
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    Thomas Jacobs Senior Vice President - Manager, US Public Finance Moody's Ratings Bio
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    Nick Samuels Senior Vice President, States Ratings Team Moody's Ratings Bio
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    Nicholas Lehman VP - Senior Analyst Moody's Ratings Bio
  • Event Manager keyboard_arrow_down

    If you have any questions about the event, please contact Suheylee Fragoso at Suheylee.Fragoso@moodys.com.