February 2, 2024
Local Property Taxes To Skyrocket Due To Work From Home Impact
The article below is specific to Boston, but when you read the article you'll see that it is true for every Tier 1, Tier 2, and Tier 3 city in the Western World.
Long story short is that property taxes are going up for both commercial and residential property owners.
Residential property owners are likely to experience the biggest % increase, as cities try to lessen the burden/impact of raising property taxes for Commercial Property Owners.
Cities will know that when they do increase property taxes fro Commercial Property Owners that this increase in costs will be passed on by the owner to the Commercial renter in the form of higher rents. The Commercial renter then will reduce their space requirements upon renewal and move more people into a Hybrid scenario to reduce costs.
Typically Commercial Real Estate will represent a top 5 monthly recurring expense for any business, and as such will be top of the list by the CFO for cost reduction opportunities.
ARTICLE SOURCE : https://www.msn.com/en-us/money/realestate/empty-o...