Office Landlords Are Challenging Their Tax Bills

Landlords in Boston, facing “crazy vacancies,” are now pushing back on commercial valuations. Some property owners are even arguing their properties are worth half of what the city assesses, a stark signal of distress in the office sector. The core issue: sky-high vacancy rates have decimated value, and holding powerless assessments means heavier tax burdens amid collapsing demand. The real problem isn’t just emptiness, it’s that owners feel stuck with property taxes that don’t reflect today’s reality.

But what if landlords treated their buildings like cities treat their waterfronts, blending resilience with amenity rather than battling value declines head-on? Adaptive reuse offers a route out. Boston has already seen successful examples: converting the old Landmark Center (a former Sears warehouse) into retail, office, entertainment, and childcare space, and transforming the Charles Street Meeting House—a historic church—into mixed-use office and retail while preserving its character. These are far from isolated; the state is funding conversions of vacant office buildings into housing, projects that would not only activate empty structures but also diversify tax streams. One Chestnut Place and 31 Milk Street are just two of the office-to-residential transformations underway with state and municipal incentives...

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RSK: Every office owner should look at their tax evaluations...in fact, mall commercial property.