In San Francisco, Government Failure Erases Billions of Dollars of Commercial Real Estate Valuations

ConclusionAn overly energetic lockdown and actions that concentrated violent and unstable individuals in the downtown area have contributed to the collapse of real estate values in San Francisco ’s prime hotel, office, and retail districts. Quasi‐​governmental institutions that might have stepped in to provide improved security and street conditions have been enfeebled in part by city policy.At this point, it does not appear that any set of feasible policies can restore downtown San Francisco to the heights it reached in 2019.  A more realistic possibility is that it will stabilize at much lower levels of occupancy, activity, and value forming a new base from which to grow. New and remaining property owners should be given the tools and the space to restore a sense of security among those visiting, shopping, and stayi ng in the neighborhood. Finally, city and state leaders should avoid overreacting to pandemics.
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs