In December, a group of top office building owners and operators in Washington DC sent a letter to DC's new chief financial officer warning that collapsing property values are a threat to the fiscal health of the city.
This week, DC CFO Glen Lee underlined this threat with an estimate of the damage to the city's tax base from cratering office values: Lee is projecting an overall reduction in real estate property tax revenues totaling $464M over the next three fiscal years.
DC's fiscal chief cited the proliferation of remote work in Washington as the primary culprit for DC's sagging office market, which is lagging in its recovery as businesses follow the example set by the city's largest office tenant—the federal government, which continues to allow thousands of federal workers in DC to "telework."
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