Actually, the modern architectural style (glass facades that are very reflective in the SWIR and LWIR bands) would probably wind up igniting a bunch of fires--the initial thermal pulse would get reflected every which way (before those windows blew in/out) and hit just about every flammable surface available. Instant fires...the lack of a major blast wave would actually tend to keep those fires lit.
I would expect that to have a slight diffusing effect for a block or two, but mostly the effect would be to reflect the light upwards toward the sky.