San Francisco Faces $1.2 Billion Budget Deficit By 2027 Due to Remote Work Exodus

Vacancy rates in San Francisco office buildings have reached a record 34% as companies move to hybrid work models. This is reducing commercial real estate tax revenue.

The shift to remote work is seen as permanent by experts. The "donut effect" of people moving to the suburbs is occurring.

San Francisco is forecast to have a $1.2 billion budget deficit by 2027 due to declines in commercial real estate tax revenue.

Repositioning offices as innovation hubs could revitalize downtowns. Cities are becoming more accommodating to development.

Public transit declines and outflows of lower-income workers are concerns for the economic future.