Council Backs Blue Ribbon Commission to Address Downtown Office Vacancies and Revenue Loss

The Council adopted a resolution supporting the creation of a Blue Ribbon Commission to study and address the rising number of office vacancies across Downtown Boston — a growing challenge that has major implications for the city’s economy and long-term fiscal health.

According to the resolution — Downtown Boston has long served as a critical economic engine for the city, the Commonwealth, and the broader New England region; however, since the onset of the COVID-19 pandemic, the rise of hybrid and remote work has left many offices empty and continues to significantly impact Boston’s commercial core.

With more than 70% of the city’s FY26 $4.8 billion budget funded by property taxes, and commercial property making up 35% of the city’s total revenue, declines in office occupancy pose a threat to the city’s financial stability. Recent data from the Boston Planning and Development Agency (BPDA) identifies the Financial District as Boston’s largest office submarket, with 91% of its building stock designated for office use.

A 2023 report by Cushman & Wakefield found Boston’s office vacancy rate has climbed to 17%, up from 15.1% the previous year. High-profile commercial buildings have sold at deep discounts over the past year — including 101 Arch Street, One Lincoln Street, and 99 High Street — indicating a downward trend in office property values.

According to joint research by the Boston Policy Institute and Tufts University’s Center for State Policy Analysis, the city could see a $1.7 billion to $2.1 billion revenue shortfall over the next five years, with office property values projected to drop by 35–45% from 2024 levels.

Local stakeholders, including commercial real estate executives, have voiced urgent concerns and are calling for greater collaboration between city, state, and federal leaders to bring more foot traffic and economic activity back downtown. They’ve also raised alarms about the potential for falling commercial property values to shift the tax burden onto residential property owners.

In 2023, the Council explored measures such as encouraging in-person public meetings as a way to help bring workers and visitors back to the area; however, to date, only the Boston Planning Department’s monthly Board of Directors meetings have resumed in-person operations with a hybrid option.

Recognizing the need for comprehensive action, the resolution supports forming a Blue Ribbon Commission composed of business leaders, government officials, community advocates, and subject-matter experts. This body would be tasked with studying the impacts of office vacancies and developing strategies to address them, stabilize revenue, and secure the long-term economic vitality of both Downtown Boston and the city as a whole.