Portland office tower sales prompt worries over tax revenue

Deeply discounted office tower sales — including some landmarks of the Portland skyline — show how far the city’s commercial real estate market has fallen.

Why it matters: The fallout is now hitting property tax revenues, pressuring city and county budgets to do more with less money.

By the numbers: For years, the impact was hard to quantify because so few buildings were selling, but that’s changed.

  • Montgomery Park, in Northwest Portland, sold for $33 million in August after it was bought for $255 million in 2019.
  • The PacWest Center went for $55 million in October after it was purchased for $170 million in 2016.
  • Big Pink, arguably the most recognizable office tower in the city, sold in July for $45 million, just 12% of the $372 million it fetched in 2015.

Many of the biggest downtown office buildings have lost 70% to 85% of their value, Multnomah County economist Jeff Renfro tells Axios…

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