Despite employer mandates, foot traffic remains significantly lower than pre-pandemic levels
- San Francisco office buildings have 53% less foot traffic than four years ago
- Office visits by workers are still 36.5% lower nationally than in December 2019
- New York City office buildings were experiencing only 19.2% less foot traffic than in December 2019
- Vacancies in major cities reached 19.6% in the fourth quarter
- Office buildings in central business districts saw a 26% drop in property values
Office buildings in San Francisco and New York City have seen a significant decline in foot traffic compared to pre-pandemic levels. San Francisco experienced a 53% decrease in foot traffic in December compared to four years ago, while New York City saw only a 19.2% decrease. Nationally, office visits by workers are still 36.5% lower than in December 2019. This decline in foot traffic has contributed to high vacancy rates in major cities, reaching 19.6% in the fourth quarter. Additionally, office buildings in central business districts have seen a 26% drop in property values. These trends reflect the challenges faced by the commercial real estate industry, with many borrowers struggling to refinance maturing loans. Despite employers mandating more in-person work, foot traffic remains significantly lower than pre-pandemic levels.
Public Companies: Placer.ai (null), Real Estate Board of New York (null), Kastle System (null), Moody’s Analytics (null), BofA Global (null)
Private Companies:
Key People: Alan Todd (CMBS research team at BofA Global)
Factuality Level: 7
Justification: The article provides data from Placer.ai and Moody’s Analytics to support its claims about foot traffic in office buildings and vacancies in major cities. It also includes quotes from industry experts. However, the article lacks specific sources for some of its statements and does not provide a balanced perspective on the topic.
Noise Level: 3
Justification: The article provides data and analysis on the foot traffic in office buildings in San Francisco and New York City. It also discusses the impact of the pandemic on the commercial real estate industry. However, there are some irrelevant and repetitive information, such as the mention of Placer.ai multiple times and the reference to the Real Estate Board of New York relying on cellphone data. The article could have been more focused and concise.
Financial Relevance: Yes
Financial Markets Impacted: U.S. commercial real estate industry
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the decline in foot traffic in office buildings in San Francisco and the impact on the U.S. commercial real estate industry. It also mentions the rebound of office buildings in New York City. However, there is no mention of any extreme events or their impact.
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