Tax & Accounting News

Call For Portland Tax Abatement to Turn Abandoned Offices Into Housing

Call For Portland Tax Abatement to Turn Abandoned Offices Into Housing

Some Portland residents have begun calling for the city to implement a tax abatement for real estate developers interested in converting abandoned offices into housing.

Credit: Didier Marti/Getty Images

The landscape of the American workforce has changed dramatically since the start of the COVID-19 pandemic in early 2020. An increasing number of companies have gone fully remote, leaving office buildings in metropolitan areas around the country shuttered. 

Portland is no exception. 

According to a new report from Willamette Week, 55% fewer workers now commute to downtown Portland each day compared to before the pandemic. 

The city is facing a homeless crisis, so the obvious solution is to convert some of the unused office space into housing. Over the summer, according to WW, the mayor’s office received a report from a local real estate expert listing 14 office buildings that are prime candidates.

Credit: Sycik Imagery/Getty Images

“Any of the quarter-block or half-block historic office buildings are prime candidates. There’s going to be winners and losers in demand for what’s left of the office stock,” said Brian Pearce of Unico Properties.

He continued, “Older and smaller buildings are likely to be more vacant than the other buildings.”

The issue with converting these types of properties from commercial to residential spaces is the cost. With the cost of conversion costing as much as $500 per square foot, it isn't financially feasible for real estate developers. 

One potential solution? A 20-year tax abatement program to help offset some of the costs.

As WW pointed out, New York City passed an abatement like this in the 1990s with great success, specifically in Lower Manhattan. 

While a specific tax abatement bill has not yet been proposed, the Oregon Legislature is already looking to make changes during their upcoming 2023 legislative session.

Representative Pam Marsh (D-Ashland), for example, has proposed a bill that would create a state loan fund cities could borrow from to fund conversions.

Credit: EyeWolf/Getty Images

WW noted that local changes are already underway as well, including potentially waiving system development charges and tweaking building codes. 

What do you think about Portland potentially passing a major tax abatement for real estate developers?

You Might Also Enjoy:

Feature Image Credit: Luis Henrique Boucault/Getty Images

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts