Deeply discounted office tower sales — including some landmarks of the Portland skyline — reflect 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.

The big picture: Property taxes in Oregon are based on assessed value, not current market prices, and those values only change as sales provide new data.

• Renfro says falling market values are now hitting the system in two ways: deeper tax compression, which lowers the legal cap on what a property can owe, and declining assessed values themselves.
• Together, they're slowing the growth of property tax revenue.

Case in point: In a general fund forecast from December, city economists noted that Portland has seen two straight years of assessed value growth of less than 2.2%, the worst stretch since the 1990s.

Yes, but: This isn't just a Portland problem.

• Office markets nationwide are resetting after the COVID-19 pandemic permanently reduced how much space companies need.
• "Every major U.S. market was hit at the same time," Jason Green, Portland managing director at commercial real estate firm CBRE, tells Axios.

Between the lines: Downtown office buildings make up just 3.5% of Multnomah County's assessed value, so it's not enough to cause property tax revenue to crash completely, but it does weigh on the bottom line of the city and county — both of which are facing sizable budget deficits.

The intrigue: Some office owners are now intentionally triggering reassessments of their buildings, seeking lower valuations and, in turn, lower tax rates for years to come, Renfro says.

• He warns that kind of thing could keep revenues suppressed even when values recover.

Why there's no quick fix

It's a short month, but the list of fun things to do around town is long.

• Here are a few we're most looking forward to.

💡 Keep it festive

There's no shortage of festivals and community events this month, from the Winter Light Festival — nine nights of art and performances at locations around the city (Feb. 6-14) — to a Mardi Gras parade and celebration in North Portland (Feb. 17) to an evening of lanterns and dragon dances to mark Lunar New Year at the Lan Su Chinese Garden (Feb. 18-March 1).

🤭 Tickle your funny bone

Treat yourself to a chuckle at the NW Black Comedy Festival at the Curious Comedy Theater (Feb. 16-22), grab some giggles from meme-master Nick Colletti at Helium (Feb. 10) or catch Michelle Buteau's "Surviving and Thriving" tour at the Schnitz (Feb. 20).

🎶 Bang on your ear drums

Looking for some fun drama? Head to the Moda Center for a Cardi B show (Feb. 19).

• Want something more sultry? Cat Power has you covered at Rev Hall (Feb. 21-22).

Just need some old fashioned nostalgia? Let Alec Ounsworth of Clap Your Hands Say Yeah bring you straight back to the early aughts at The Old Church (Feb. 12).

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🚖 Self-driving robotaxis could be coming to Portland if proposed legislation passes, but local officials are wary of fully autonomous vehicles, potentially setting up a showdown between Portland city councilors and state lawmakers. (Bike Portland)

👀 Abiqua Falls, one of the state's most picturesque cascades that's become a popular swimming hole east of Salem, is up for sale, which could mean the end of public access. (Salem Statesman Journal)

👮‍♀️ Federal immigration agents cannot arrest people without a warrant unless there's a likelihood of escape, per a ruling from a U.S. District Judge. (OPB)

🦈 A great white shark, fitted with a radio tag, was detected near the Barview Jetty in Tillamook, sparking a ton of social media interest as the creatures' seasonal migratory season gets underway. (The Oregonian)

The Winter Olympics return this week in Italy, where a nine-hour time difference will shape two weeks of early-morning medal events and late-night finishes for U.S. viewers.

The big picture: The Milano Cortina Games feature 116 medal events across 16 disciplines and eight sports.

• About 3,000 athletes from more than 90 countries are competing, including several from Oregon.

Zoom in: The ceremony will air this morning with live coverage starting at 11am on NBC and Peacock.

• The ceremony is expected to last about three hours and takes place at San Siro Stadium in Milan.
• NBC will also air a primetime replay later tonight.

Zoom out: Television coverage will be on USA Network, CNBC and other NBCUniversal cable channels, but Peacock, NBC's subscription streaming service, will stream every Olympic event live, including multiview and highlight features.

Yes, but: Given the time difference between Portland and Milan, many medal events will air live overnight or early in the morning.

• Weekend mornings and weekday afternoons will feature the most live action, while primetime coverage will recap the day's biggest moments.

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