Boston-area developers face a new and seemingly unlikely threat as they struggle to hang onto downtown towers and suburban office projects amid the Great Recession – tax hikes.
According to the Banker & Tradesman: The prices of urban towers and Route 128 office palaces alike have plunged dramatically from their boom-time high, forcing some commercial property owners to the edge of foreclosure. Yet as the value of these developments scrapes bottom, local tax bills for many commercial properties are headed up.
The increases will mean millions in added taxes for office owners, all at a time when the commercial real estate market is in the midst of an historic bust.
File Under: Bad Timing