Municipalities and school systems that depend on property taxes to fund their budgets may face shortfalls due to the plunge in office values—especially in cities that do annual property assessments—as more and more building owners appeal their assessments.
In jurisdictions that reassess property values annually, owner appeals of tax assessments are up by as much as 40% compared to pre-pandemic levels, Bryan Frey, a managing director in CBRE's valuation consulting business, told the Wall Street Journal this week.
Carr Properties, which owns a large portfolio of office buildings in Washington DC, told the Journal it would be appealing this year's assessment from DC, which cut large office building assessed values by 11% in 2021, but raised them 3.6% in 2022.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
