The tax bill is due for office towers in Boston, and with vacancy rates up and values down, many of the companies that own them are poised to ask the city for a break.
While experts expect this year won’t bring an apocalyptic drop in commercial property tax revenue to the city — revenue that forms a substantial chunk of the city’s $4.3 billion operating budget — there’s growing worry that the expected drop in overall office values could be something of a ticking time bomb for the years ahead.
“Many office owners are facing existential risks,” said Owen Thomas, CEO of Boston Properties, one of the city’s largest office landlords, in a call with analysts this week. “Many institutional owners want to diversify away from the office asset class.”
Source: Real estate: Boston office towers could seek lower taxes as market slumps
