MyEListing.com, a free online resource for commercial real estate professionals from all corners of the industry, recently released their picks for the five highest-risk cities for CRE investments in 2023.
“From a demographic perspective, each of the listed cities is losing population, has a high share of the United States GDP, and has a relatively cumbersome tax structure,” reads the report.
With its high business taxes and handsy local government, New York City makes number five on the list. “The risk for New York lies in the ease with which people can vacate it and remain productive. The fact the NY state government is acting to secure residents’ official status, so they have to pay taxes to it is not a good look, and as people decide to leave, businesses follow.”
San Francisco takes the number one spot on the list. According to the report, its risk factors are similar to those of the other cities on the list yet amplified due to its geography and political situation.
“San Francisco has all problems of the other cities on this list, just more acute due to its peninsular geography and political oddity,” says the report. The city “has profited handsomely from its proximity to San Jose and Silicon Valley for an extended time, but circumstances have arisen which could relocate if not decentralize its effects.”
For similar taxation and emigration reasons, Portland, Los Angeles, and Chicago also made the list. You can find the full report here: https://myelisting.com/commercial-real-estate-news/1377/the-five-highest-risk-cities-for-cre-investment-in-2023/
MyEListing.com is a national commercial real estate marketplace and data platform connecting real estate professionals and others from all corners of the industry. Users can sign up for free and access accurate local market intelligence, comp software, and more. The platform also supports other players in the industry, including NAI Global, Colliers, and Cushman & Wakefield.
Company Name: MyEListing
Contact Person: Brian Kidder
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Country: United States
Source: Financial Content