San Francisco Mayor London Breed said that workers are not returning to the office which has resulted a loss of $400MM in tax revenue. Some of the reasons for this is fewer people in the city (while not an exodus, the office vacancy rate is more than 24%) but I suspect this is also due companies moving out of SF for tax reasons (Stripe moved to Oyster Point).
- NYC office real estate value declined 32%
- Other cities are competing for tax revenue from remote work
- With declining tax revenue, it’s more apparent that remote work will become a political issue
Links to this note
A recent study found that workers in Manhattan are spending $12.4B less than last year on meals, shopping, and entertainment near their offices. The author says this is due to remote work as workers are spending 30% less days in the office. This impacts local businesses that cater to office workers but also city tax revenue.
Outline for my annual essay about things I learned and reflections for the year.
Up to this point in the COVID-19 pandemic, remote work has been a buoy keeping many parts of the economy afloat. We’ve seen that working from home was so successful and fears of loss of productivity were unfounded. Now we are starting to see a reactionary movement that will find it’s way into political agendas—how to get workers back in the office.