Downtown Boston Property-Assessment Challenges Spike 

Boston is experiencing an increase in challenges to its property assessments, particularly in downtown areas, as property owners seek to reduce tax bills due to the COVID-19 pandemic’s impact on office real estate, Boston Business Journal reported.  

In fiscal 2024, officials received 322 abatement applications in the city’s third ward, a 27% rise from fiscal 2023. This trend reflects a gap between assessments and real-world values, evident in recent downtown office transactions.  

Mayor Michelle Wu initiated a tax-break program to convert offices into residential buildings and convened discussions with business leaders to address declining commercial values. Construction has slowed due to interest rate increases. Greater Boston Chamber of Commerce CEO Jim Rooney expects commercial property values to decline or remain stable in the next five years.