A topic that doesn't come up often enough when discussing the future of office is property taxes. Because the money that comes into local and county governments is significant. But what will happen when office buildings' valuations decline because of the shifting patterns of demand?
As Danny Ismail, co-head of Green Street's Strategic Research group, recently wrote, "The likely outcome is for commercial real estate to bear higher tax burdens via higher property taxes, transfer taxes, and potentially 'green' taxes. Several cities have already made this move with more likely on the way."
Pew put together some interesting numbers on the general topic: 61% of tax income to cities and counties comes from property tax. The rest is a mix of sales tax, income tax, and some other types. In 40 states, property taxes lead revenue sources.
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