If offices in downtown D.C. remain empty and current leasing trends continue, the city could lose millions from commercial property tax revenue, according to a new analysis from the D.C. Policy Center.
Demand for office space downtown has dwindled, according to D.C. Policy Center executive director Yesim Sayin, because companies are either not renting spaces or renting less of it. The implications of that, she said, are starting to become clearer, years after the pandemic started.
“Companies are no longer leasing, and that means your real estate is no longer desirable, and that means we really do not know what those buildings are worth anymore,” Sayin said. “We also haven’t seen any sales. You really never know the true value of a property until you sell it.”
If vacancy rates reach availability rates, the analysis found, the city could lose over $100 million in tax revenue. While that may not seem like a large amount when compared to overall tax revenue, “it’s not nothing, especially in years like this where every other tax base is suffering and the city is really in need of money,” Sayin said.
Click here to read the rest of the article written by Scott Gelman over at WTOP
