Boston CRE doom loop vibes. In order to counter the lost tax revenue from vacant office buildings, the mayor is proposing higher taxes on office buildings. cc: @arpitrage bloomberg.com/news/articles/…
@TheStalwart @arpitrage Why is Boston such an outlier in terms of its tax base?
@TheStalwart @arpitrage The loss in net income will have a 15-20x impact on property value, driving down tax assessments.
@TheStalwart @arpitrage “Boston CRE doom loop vibes.” The Covid 19 debris field. Enjoy!
@TheStalwart @arpitrage When will governments realize that they don’t have a revenue issue, they have a spending issue?
@TheStalwart @arpitrage Upzoning residential is a credible way out.
@TheStalwart @arpitrage What happens when the office property taxes go up? Equity gets wiped out and lenders take a loss, sure. But does the occupancy go down? That is, will any of the Boston office buildings become uneconomical to operate at any rent and be abandoned? That’s the doom loop question.
@TheStalwart @arpitrage Great idea raising taxes on a sector in crisis. Brilliant!
@TheStalwart @tracyalloway @arpitrage And many older officers building won't allow EV in their multi level garage.