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."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.