New York’s swelling volume of empty commercial properties may mean much higher property tax bills are on their way. Be sure you claim the savings you should be getting instead.
Despite several failed starts it is now pretty clear that Manhattan’s era as an office capital of the world is pretty much history. Even the largest corporations that desperately clung onto the idea of returning their workers to the office are now admitting that isn’t a good idea.
That may impact your expenses in a surprising way over the next year. It’s up to you to make sure it means tax savings, not more tax hikes.
NY’s Empty Office Issue
NYC itself is estimated to have around half a billion square feet of office space. Real estate which is now virtually useless.
Long Island has its share of empty office listings too. According to Property Shark, Suffolk County has 626 office spaces up for lease. Nassau County has 277. Many more could be hitting the market for lease and sale soon too.
When types of real estate see demand disappearing their values go down too. In this case it could be one of the steepest dives we’ve ever seen.
While it may begin with office space as the epicenter, it is likely to touch most other property types too.
This is especially expected in retail space and food and restaurant venues. In fact, new restrictions could reveal the real impact on these properties in 2022.
Fewer jobs, less work, also means less employees. Which could impact rental property and home values too.
Some have floated the idea of converting all of these commercial properties into apartments and condos, but what demand would there be if there is no work, and limited entertainment options or freedom?
The Property Tax Issue
One big problem is that all of these failing commercial buildings mean less revenue coming in for the state, counties and local government. Expect them to continue to try to make up for that with higher tax rates.
Plummeting property values also mean that tax rates would have to be raised even further to maintain the status quo.
At the same time taxes are rising, increased restrictions are impacting businesses' ability to make money. While extreme inflation is threatening to bankrupt them.
Of course, as property values go down, annual property tax bills should be lowered too.
It’s highly unlikely those breaks will be voluntarily offered. They will hope taxpayers just pay more than they should without questioning their bills.
You don’t have to be a victim of that. You should be challenging your property tax assessment and bill to save money and get the discounts you are owed instead.