https://www.afire.org/podcast/risingpressurecast/
The increasing burden of state and local taxes required to face the mounting level of unfunded pension liabilities and other committed liabilities could drive widening differentials in local business and living costs, alter regional growth patterns and thereby affect CRE demand.
The COVID-19 pandemic and its impact on the economy and local tax collections is exacerbating this pre-existing issue.
The latest joint report from the Praedium Group and SitusAMC, published earlier this year in Summit Journal, looks at rising fiscal pressures on state and local governments, including large-scale changes accelerated by the pandemic.
Throughout the stages of the past economic cycle, Praedium and SitusAMC Insights have published a series of joint reports analyzing the fiscal pressures on state governments and how the resulting responses to those fiscal pressures may affect demographic patterns, economic growth trajectories and commercial real estate demand.
On this episode of the AFIRE Podcast, report authors Russell Appel, Founding Principal of The Praedium Group, and Peter Muoio, Ph.D., Senior Director for SitusAMC Insights, discuss how this research has evolved, and what it means for the future of commercial real estate investments.