A Florida Senate committee has unanimously approved Senate Bill 90, which would implement Amendment 4 and eliminate property taxes on solar and other renewable energy devices installed at commercial and industrial facilities for 20 years. The same tax break already exists for residential property owners. Florida voters passed the Amendment 4 ballot initiative last summer with almost 75% of the vote. The legislation would go into effect in 2018, and would also exempt renewable energy devices from Florida’s tangible personal property tax, including storage tanks, rock beds, thermostats and control devices, and heat exchangers.
The oil and gas industry is projected to make a significant increase in property taxes payments to eastern Ohio counties over the next decade, according to two industry groups who are estimating an increase from $43 million to $250 million. The Ohio Oil and Gas Association and the industry-funded group Energy In Depth collected data on property tax revenue for the six counties home to the most drilling in the Utica shale play since 2011, when hydraulic fracturing and horizontal drilling brought a bevy of drilling and related activity to Appalachian Ohio.
Recent and long-term historic trends indicate Chicago's real estate market could remain healthy for years to come, JLL chief economist Ryan Severino said during JLL's Chicago 2025 event last week. According to Bisnow, Severino discussed three particular factors that will continue the city’s strong momentum through 2025: a diverse workforce, an abundance of degreed professionals, and limited concerns with higher interest rates.
The Delaware County Board of Assessment Appeals was court-ordered to conduct a countywide reassessment of all properties in Delaware County, Pennsylvania. The order follows a trial with a residential property owner appellant. The County Board was directed to submit a preliminary timetable by July 1, 2017 for completing the reassessment. The County is fighting the order and filed a motion for reconsideration, arguing that the Homebuilders of Delaware County are the “sponsors” of the appeal, and that they: (1) pursued and funded the litigation under a champertous agreement; (2) lack standing to maintain the action; and (3) presented an unreliable ratio study at trial. If mandated, the Delaware County reassessment will likely result in increases for most commercial properties.
Chicago was the third-busiest market for data center activity in 2016, thanks to Microsoft, Oracle and a host of financial firms absorbing large amounts of space across the city, according to the latest research from JLL. JLL reported that the Chicago data center market absorbed 56 megawatts last year. That’s a big number – JLL measures data center absorption in megawatts, not square footage – behind only to the Northern Virginia and Northern California markets and just ahead of Dallas-Fort Worth and the Pacific Northwest. It was a record year for Chicago from an absorption standpoint.
New legislation, introduced by state Rep. Jim Murphy, R-Houston, is intended to help Texas school districts and protect taxpayers whenever tax revenue from valuable commercial properties is taken from one district and sent to another via a system known as recapture. Houston Independent School District is facing the so-called “Robin Hood” scenario after voters in November decided against sending a separate $162 million recapture payment to the state, triggering a process whereby the Texas Education Agency may "detach" commercial properties and reassign their associated tax revenue.
Commercial property price indices (CPPI) continued to either hold steady or trend upward at the end of 2016, the most recent period for which data is available, signaling the likelihood of an extended market cycle. According to the National Real Estate Investor, the Moody’s/RCA national all-property CPPI rose by 1.4 percent in November compared to October. Over a three-month period, the index went up 3.0 percent. Suburban office buildings experienced the most significant month-over-month increase in prices, at 2.6 percent, followed by office properties in general, at 2.1 percent. Retail assets saw the least movement in prices, at 0.1 percent (prices in the sector also fell 0.4 percent over a three-month period). The Moody’s/RCA CPPI is calculated using repeat sales transactions that take place two months before the figures are released.
Property tax bills for New York City commercial real estate owners have soared under Mayor Bill de Blasio, according to city data. While the tax rate for commercial properties increased slightly, the annual increase is driven largely by rising value assessments. The average tax bill, without abatements, is set to jump to $111,023 in fiscal 2017, which ends June 30, from $85,841 in fiscal 2013, the last full fiscal year former Mayor Michael Bloomberg was in office, the data show. In all, the average commercial property tax bill has jumped 29.3% since Mr. de Blasio’s tenure.
Fueled by the rapid growth of e-commerce, the U.S. industrial market is benefiting from tight supply and rising rents and is expected to enjoy sustained momentum throughout 2017. To track the most in-demand markets, real estate services firm CBRE put together a list of cities and regions with the lowest prime yields on logistics assets. The average prime yield for the U.S. is currently 5.84 percent.
As the number of empty storefronts continues to grow across the U.S., signs are pointing to a slowdown for the national retail-property market. Vacancy rates in community shopping centers increased in 30 of 77 U.S. metro areas last year, compared with 24 in 2015 and 19 in 2014, according to data from real estate researcher Reis Inc. Rents, which usually increase roughly at the rate of inflation in healthy markets, decreased in two metro areas for the full year. In the fourth quarter, rents fell in 15 metro areas from the third quarter.