The recent op-ed by Ashley Groffenberger, chief financial officer for the City of Boston, highlights the deeply concerning approach Boston City Hall is taking on commercial property taxes (“Boston needs a temporary tax hike on commercial properties,” Opinion, May 30).
Need proof? Just look at how some of the commercial buildings in Boston have traded recently. Just last month, 147 Milk St. sold for almost a quarter less than its sale price three years ago. And just a few months ago, Synergy purchased 179 Lincoln St. for just under half of the building’s 2020 sale price.
Examples like these persist, highlighting how Boston’s commercial real estate sector has struggled to rebound as post-pandemic trends, including remote work, have become the long-term reality. Increased taxes on these businesses could not come at a worse time.
Forcing commercial owners to pay more in taxes would harm property values for those who stay and drive others to set up shop outside of Boston. Either case is bad for the city and its residents. Because Boston depends so heavily on commercial property taxes to fund public safety, education, trash collection, and so many other essential city services, it needs existing properties to thrive, and it needs to attract further businesses to these properties.
Boston City Hall must focus on making the city’s economy more competitive, not less.
Mike Edward
Boston
The writer is chair of the Greater Boston Real Estate Board and president of the commercial real estate services firm Perry CRE.