4 ms·

Boston Faces $1B Tax Deficit from Faltering Office Market

8 points by samaysharma 3y ago

AtlasBarfed 3y ago
If only there was something you could do with large amounts of building space in an urban environment, something that people need desperately and has been chronically underbuilt for a decade. SOmething that actually keeps people in a downtown more than an office job and encourages local businesses and community. Nope, can't think of it. Better ask for a federal bailout.
- akeck 3y ago
  Unfortunately, modern office buildings are proving difficult to convert to housing because of how they're constructed combined with code standards for housing (like required windows). Re Fed bailout, I suppose the Feds could fund tearing down unused office space and building code-compliant housing :-/ https://www.npr.org/2024/02/15/1231233364/office-building-return-to-work-remote-housing https://www.npr.org/2024/02/15/1231233364/office-building-re...
  - AtlasBarfed 3y ago
    I've heard this before and I'm pretty skeptical. First off, all office buildings I've seen have tons of windows. It sounds like they need to divide the spaces with larger (gasp) apartments. Or you offer each apartment a huge storage space, which I think people would REALLY like to have. I fail to see how if huge warehouse districts were effectively converted to housing, that a effing office building that has plumbing and electrical to a substantial degree already can't be done. Code is cover for NIMBYism.
- supertrope 3y ago
  I agree this is the ultimate solution. Too many downtowns are purely zoned for office buildings, parking garages, and roads and highway exists. Office to housing conversions are expensive. They often involve cutting a hole in the center of the building to allow for more windows. In my city a bank tower was turned into 200 housing units but the rent is 200% of median. Higher interest rates are a big headwind to real estate investment.
nine_zeros 3y ago
This applies to entire New England region but definitely to Boston - population is declining, due to low birth rates and out migration. A lot of people just can't afford to live in Boston/Cambridge/surrounding towns. Boston just does not have an economy like NYC, DC or the Californian agglomeration from SD to SF. So people are moving out far too Worcester or RI or NH to just be able to live. If they are adventurous, NYC/DC it is.
- xhkkffbf 3y ago
  The taxes up there are outrageous. I'm a super woke person, but even I can't agree with some of the ways that they're just handing out money like it's candy. The taxes are driving out the people who work. Are the programs a great idea? Absolutely. Are we seeing the downsides? I believe so.

8 points by samaysharma 3y ago

If only there was something you could do with large amounts of building space in an urban environment, something that people need desperately and has been chronically underbuilt for a decade. SOmething that actually keeps people in a downtown more than an office job and encourages local businesses and community. Nope, can't think of it. Better ask for a federal bailout.

akeck 3y ago
Unfortunately, modern office buildings are proving difficult to convert to housing because of how they're constructed combined with code standards for housing (like required windows). Re Fed bailout, I suppose the Feds could fund tearing down unused office space and building code-compliant housing :-/ https://www.npr.org/2024/02/15/1231233364/office-building-return-to-work-remote-housing https://www.npr.org/2024/02/15/1231233364/office-building-re...
- AtlasBarfed 3y ago
  I've heard this before and I'm pretty skeptical. First off, all office buildings I've seen have tons of windows. It sounds like they need to divide the spaces with larger (gasp) apartments. Or you offer each apartment a huge storage space, which I think people would REALLY like to have. I fail to see how if huge warehouse districts were effectively converted to housing, that a effing office building that has plumbing and electrical to a substantial degree already can't be done. Code is cover for NIMBYism.
supertrope 3y ago
I agree this is the ultimate solution. Too many downtowns are purely zoned for office buildings, parking garages, and roads and highway exists. Office to housing conversions are expensive. They often involve cutting a hole in the center of the building to allow for more windows. In my city a bank tower was turned into 200 housing units but the rent is 200% of median. Higher interest rates are a big headwind to real estate investment.

nine_zeros 3y ago

This applies to entire New England region but definitely to Boston - population is declining, due to low birth rates and out migration. A lot of people just can't afford to live in Boston/Cambridge/surrounding towns. Boston just does not have an economy like NYC, DC or the Californian agglomeration from SD to SF. So people are moving out far too Worcester or RI or NH to just be able to live. If they are adventurous, NYC/DC it is.

xhkkffbf 3y ago
The taxes up there are outrageous. I'm a super woke person, but even I can't agree with some of the ways that they're just handing out money like it's candy. The taxes are driving out the people who work. Are the programs a great idea? Absolutely. Are we seeing the downsides? I believe so.