Good. SF is able to paper over it's structural problems with money. That's a waste of time and money. Fix the core issues - money can't.
The good thing about Prop 13 in cases like this is most real property (including most commercial real property) is taxed at a basis value so far below its actually fair market value that even a sale realizing a sizable loss from its former paper value is often only a small hit to the tax rolls (and can actually be a boon, resetting the tax basis above what it was, given the limited increases without a change in ownership.)
Every Listed Property Trust worldwide did some write down in covid.
Wework is not a special case.
good. the era of overinflated real estate in SF is hopefully coming to an end.
The problem is that none of the significant price deflation is happening in residential property, it's just commercial/office space.