Empty Spaces and Ticking Clocks

McKinsey tells us the COVID-19 pandemic has led to a 30% drop in office attendance and a shift in urban populations, PWC shows us real estate professionals are focusing on long-term strategies beyond cyclical challenges, and we learn from Bloomberg that SVB is urgently seeking a bankruptcy plan to preserve $11 billion in NOL.

In this issue of Above the Line, we give you the three most important stories in Real Estate, Investing, and Taxation.

Empty spaces and hybrid places: The pandemic’s lasting impact on real estate
McKinsey Global Institute
The COVID-19 pandemic reshaped the way we work, live, and shop, with significant implications for real estate in superstar cities. With remote and hybrid work becoming the new norm, office attendance stabilized at 30% below pre-pandemic levels, causing urban cores to lose population and retail foot traffic to remain below pre-pandemic levels.

Emerging Trends in Real Estate, 2023
PWC
In the real estate industry, professionals are adopting a long-term perspective, looking beyond cyclical challenges like rising interest rates and focusing on repositioning their firms for sustained growth and strong returns, according to this year's Emerging Trends report, which also highlights how some property market trends are returning to pre-COVID patterns while others have permanently changed due to the pandemic's impact on property usage.

SVB Financial Faces Ticking Clock to Save Billions in Tax Assets
Bloomberg Tax
SVB Financial Group is racing against the clock to form a bankruptcy exit plan by the end of the year that will preserve potentially $11 billion in net operating losses (NOLs). The fate of these NOLs could be pivotal in attracting bondholder interest in acquiring the company, with substantial NOLs being seen as a central factor in drumming up interest in SVB Financial.

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