Wu pitches commercial tax hike to counter tumbling values

Mayor Michelle Wu wants to temporarily shift some of the city's tax burden away from residential property owners if commercial property values take a nosedive.

Why it matters: Wu wants to head off a situation in which decreasing commercial property values in the coming years force the city to rely even more on residential owners.

• If commercial property values tank, she wants building owners to temporarily pay 200% of the residential tax rate in the short term to take pressure off residential taxpayers in the long term.

Business-minded city councilors aren't happy with Wu's one-size-fits-all approach and fear a greater tax burden on commercial property will stop investors from locating in Boston.

The big picture: The future of major cities' downtowns, including their commercial real estate values, depends on how economically diverse they can become in a post-COVID world, according to new research from the University of Toronto's School of Cities.

What they found: Cell phone activity in 62 metropolitan areas in the U.S. and Canada shows office vacancy rates increasing, but after-hours activity is compensating for fewer midday workers.

• Cell phone activity in downtown Boston is 61% of its pre-pandemic high during working hours, but jumps to 89% in the evening.

Southern cities like Tucson, Charlotte, Jacksonville and Houston are seeing urban recovery boosted by nightlife and entertainment. Nashville's arts and tourism-focused downtown is doing particularly well.