Plunge in Office Values Reveals Depth of D.C.’s Looming Economic Crisis

The office market in Washington, D.C. is experiencing a major economic crisis as office values plummet because of remote work and companies downsizing. Recent building sales have revealed that office values have been hit hard, with properties selling for less than 40% of their previous sale prices. Experts predict that more office owners will decide to sell at dramatic losses, resulting in a significant loss of money for investors and lenders and a blow to the city’s budget. The crisis is expected to have far-reaching implications for the city, including a battle between landlords and local assessors over property values and a potential decrease in property tax revenues. The depth of the plunge in office values is unprecedented and has caught many in the market off-guard.

In a recent article published by Bisnow, Ryan Principal, Grant Steinhauser weighed in on the current state of the market and how it will affect upcoming property tax appeals.