Boston is facing a surge in property assessment challenges, particularly in its downtown areas, as property owners strive to lower their tax bills amid the COVID-19 pandemic’s impact on office real estate. According to Boston Business Journal, there has been a 27% increase in abatement applications for fiscal year 2024 compared to the previous year. This trend highlights a discrepancy between assessments and actual market values, which is evident from recent transactions of downtown office spaces.
Mayor Michelle Wu has taken action by implementing a tax relief program that encourages the conversion of offices into residential buildings. She also held discussions with business leaders to address the declining commercial values. The rise in interest rates has resulted in slower construction activity as well. Jim Rooney, CEO of Greater Boston Chamber of Commerce predicts that commercial property values will either decrease or remain stable over the next five years.
The article “Downtown Boston Property-Assessment Challenges Spike” was originally published on Connect CRE.
