Stagnant CRE Investment Sales Sharply Reduce MTA Revenue
The broader effects from the challenges facing the commercial real estate market continue to surface, the latest impact hitting the Metropolitan Transportation Authority’s (MTA) revenue. Due to a big drop in commercial real estate investment sales and mortgage activity, the agency incurred a $636 million decline year-over-year in collected revenue through real estate taxes in 2023. The loss in revenue would require the MTA to either find another revenue source to fill the gap or reduce expenses to balance their budget. Heavily dependent on the region’s economic vitality, the MTA had the foresight to “project a weaker intake from real estate transactions and stronger collections from sales taxes,” thereby reducing its risk and lowering the deficit to $16 million of what it had budgeted.