"A “doom loop” therefore looms for Chicago and many other cities: Commercial leases don’t get renewed, leading to slashed commercial property tax valuations, forcing a higher tax burden on homes, reducing the value of nearby commercial property and so on."
The above is the most important part of this article. Every taxpayer I speak to cannot understand why they are paying more in property taxes. The "Doom Loop" explains why residents in the City of Chicago will have higher assessments in 2024. However, increases in the suburbs and outer counties are due to local government overspending.
The city county building had numerous plans, ideas, thoughts, to be repurposed but after developers checked it out the repurposing didn't pencil out. It's better to tear it down. Instead the government is moving 550 employees back into the building. It's become a political issue at this point. These locations for growth in growing downtown cities are valuable but the costs to repurpose them is high. Regardless, I'm in the camp to repurpose buildings and make them new.
I enjoy the character that older buildings provide. These types of projects go off with a bang in our market. People love it. Businesses love it. And it's been done multiple times.
@David A Lisowski The ideal time to get into REI was yesterday. Even with high prices and higher rates yesterday was the best day. It's a finite resource. Either you chase it or someone else does.
buy from traditional brokerage.
Woo-woo-woo there, 1 VERY important correction Carlos. Bonds are NOT guaranteed to be profitable, or even pay-out. Bonds CAN go to 0.
I get why Carlos said it as he did, bonds traditionally do pay-out and work fine BUT, there has been times they went to 0 and all invested capital was lost. Good example was '08' when various pension funds lost everything.
No investment is ever a guaranteed profit. They may be very highly probable, but never guaranteed.
It's guaranteed in all practicality, almost like moon and earth, just buy TLT this week and sell in 2027. I will give you 10% if it's not profitable LOL
Oh my friend.... Leham Bros. was also a "sure thing", until it wasn't. As was investing with Bernie, Enron, Beanie babies, etc etc etc....
A "sure thing" is far too often the most dangerous thing. Because people are so sure, the fail to pay attention to the rot in the pillars and only realize after it's all collapsed.
LOL the US Bond 'crashed' to almost 6th std deviation, this is the first time since 1785. We also know inflation is already contained at 3-4%...the bond is shouting "buy me" , I guess yesterday was the worst time to lock-in 30YFRM rate.
In other word, today is best time to buy mortgage-based securities and keep it for 5 years as the spread would narrow when volatility normalized.
As of private commercial CRE , we are all know there would be more foreclosure til 2025. That one nobody could help.
I spend a lot of time at work thinking about "digital transformation"..... we're going through a physical transformation in terms of how ppl work and live and its impact to our physical commercial property impacting downtown office space, the banks that finance these places, the small businesses that rely on business commuters, the infrastructure facilitating commuters
"A “doom loop” therefore looms for Chicago and many other cities: Commercial leases don’t get renewed, leading to slashed commercial property tax valuations, forcing a higher tax burden on homes, reducing the value of nearby commercial property and so on."
The above is the most important part of this article. Every taxpayer I speak to cannot understand why they are paying more in property taxes. The "Doom Loop" explains why residents in the City of Chicago will have higher assessments in 2024. However, increases in the suburbs and outer counties are due to local government overspending.
"If the tax value of downtown office buildings drops by 20 percent, which some experts believe is a conservative estimate, the average Chicago home’s property tax bill could rise from $5,244 to $5,424. In the event of a 40 percent decline, homeowners could see a nearly 10 percent increase, with the average residential bill reaching $5,723, assuming taxing authorities maintain their current levy rates." - Homeowners on track for property tax bumps thanks to office struggles