Real Estate
Boston Faces $1 Billion Tax Deficit From Faltering Office Market
- City disproportionately hit by properties due to tax system
- Report calls for value of office space to dip by 20% to 30%
Office buildings in downtown Boston, Massachusetts.
Photographer: Adam Glanzman/BloombergTumbling market values for office buildings are poised to cost Boston more than $1 billion in tax revenue over the next five years, as the pitfalls of the pandemic and hybrid work continue to reverberate through city budgets.
That’s according to a new analysis published Thursday from Tufts University’s Center for State Policy Analysis and the nonprofit Boston Policy Institute. The findings are based in part on a McKinsey & Co. estimate that office values will drop by 30% or more through the end of the decade. Boston has an overreliance on commercial property taxes.