D.C. Mayor Muriel Bowser announced Tuesday a program that freezes property taxes for real estate buyers planning to repurpose underused office spaces.
The Office to Anything program applies to properties in the Central Washington Planning Area, including the downtown area, parts of Southwest and the NoMa neighborhood, and any space within 1,750 feet of that boundary.
Successful applicants would get a 15-year property tax freeze as part of their efforts to convert outdated office space into retail, hotels, restaurants, modernized office space, or other nonresidential uses, Ms. Bowser’s office said in a news release.
Officials expect to convert 2 million to 2.5 million square feet of office space.
According to a PowerPoint presentation, the program requires buildings to have at least 50,000 square feet of space that is being used for offices or, if vacant, proof of recently being used for offices.
Under the program, “we will transform vacant and underutilized offices into new, productive uses that increase foot traffic, generate economic activity and tax revenue, and bring new vibrancy to D.C’.’s commercial core,” Ms. Bowser said.
There is a cap on the amount of tax abatement offered, and the program is competitive.
No abatements will start before Oct. 1, 2026, the beginning of fiscal 2027. The city will stop selecting new properties for tax abatement under the program after Sept. 30, 2030, the end of fiscal 2030, the Office of the Deputy Mayor for Planning and Economic Development says on its website.
The city will offer up to $5 million in tax abatement in 2027, $6 million in 2028 and $8 million in 2029. The abatement cap will grow by 4% every year after that.
The Office to Anything program is meant to dovetail with efforts to convert office buildings for residential use. City officials expect to add 8,400 new residential units downtown, according to the mayor’s news release.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
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