NEW YORK CITY-Delivering a mix of good and bad news for the commercial real estate market, the city has issued a report on its fiscal year as well as a future forecast. The New York City Independent Budget Office Fiscal Outlook report projects a spike in real property tax for this year and an escalation every year through 2016.
However, the recent trend of commercial properties' market value running higher than that of residential real estate is expected to reverse, with apartments outpacing office buildings and institutions over the next few years, George Sweeting, IBO's deputy director, tells GlobeSt.com.
The IBO report calls for real property tax revenues to total $18.5 billion in fiscal year 2013, up by 3% over 2012, and they will reach $19.1 billion in 2014. Growth is expected to accelerate, albeit slowly, in the last two years of the forecast, averaging 4.4% during 2015 and 2016, with revenues expected to total $20.8 billion in that last year. City officials aren't wearing rose-colored glasses, Sweeting notes, they simply are seeing signs of the beginning of the end of the Great Recession—assuming, of course, that the country is not sent over the fiscal cliff.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
