Boston’s fiscal future could hinge on the city’s real estate industry

If demand falls for downtown office space due to the pandemic, the corresponding effect on property values could pose a major threat to city finances. In that case, faced with unrelenting long-term obligations like pension costs, officials may be forced to raise taxes on businesses in other ways to make up for the shortfall, experts said. Or they could be forced to shift more of the property tax burden onto homeowners and renters, hurting firms’ ability to attract and retain talent.