According to a report from the Boston Business Journal, the 20 largest office buildings in Boston are facing a potential loss of $450 million in assessed value for this fiscal year. This is a significant increase compared to last year’s declines. The combined assessed value of these buildings is expected to drop by 4.1%, which is more than triple the decrease seen in fiscal 2024.
However, this decline may not be as drastic as initially thought when considering Mayor Michelle Wu’s recent announcement that commercial values citywide have decreased by 7%. While some of Boston’s biggest towers are struggling, others are not experiencing vacancies at the same level as older and lower-rise properties.
Despite this overall trend, there are still major landlords who have reported similar decreases compared to last year. For example, BXP’s 200 Clarendon – also known as John Hancock Tower – has an assessed value of $860.5 million currently and has experienced an annual decrease of 6.3%. In just two years, its assessment has dropped by over eleven percent.
Pictured: John Hancock Tower (200 Clarendon St.)
This news was originally reported on Connect CRE .
