For the past two years, the rapidly declining value of downtown office towers has pummeled the city’s budget and affected property taxes for thousands of businesses across the rest of Calgary.
As oil prices plunged, energy companies chopped thousands of jobs and scaled back their rental of office space in the downtown. Vacancy rates have ballooned, hitting 27 per cent in the third quarter.
Downtown buildings have also sold at reduced prices, which affects the assessed value of similar properties in the area.
A sharp drop in the value has pushed the tax load from office building owners to companies operating outside of the downtown.
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