COVID-19 dramatically altered how and where many employees work, a shift that could have a long-term negative effect on commercial real estate occupancy rates and, ultimately, on local governments’ tax revenue base, a new study reveals. 

The Impact of Work from Home on Commercial Property Values and the Property Tax in U.S. Cities concludes that even as the recovery strengthens, if trends persist, demand for commercial real estate space could fall by as much as 25%, properties’ assessed values could decline in some places, and city property tax revenue could face a sharp decrease. Researchers from the City University of New York and the University of Illinois Chicago conducted the study to be released today by the Institute on Taxation and Economic Policy. 

“The move to working from home for many employers and their professional staff helped businesses remain productive during the lockdown and since,”…

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