Clark County, Washington assessor Peter Van Nortwick has gone on record as supporting proposed legislation that would allow counties in Washington to charge a fee to commercial property owners who appeal the assessed value of their properties. Van Nortwick has said that he is surprised to learn how many commercial property owners routinely appeal their assessed values without providing any supporting documents to the county. The number of commercial and residential property owners who appeal their values account for less than one percent of total property owners, but the paperwork can take three to four months to complete. The proposed bill would allow the county to charge commercial property owners up to $500 to file an appeal to the Board of Equalization.
As a result of tax values of residential subdivision lots having been in decline for over two years, paired with the increased supply of homes in the market and prices declining, it does not make economic sense for builder/developers to put more homes into a marketplace that cannot readily absorb the existing supply of already built homes. Paradigm Tax Group can cut the tax liabilities these factors lead subdivision builders, developers and land owners to face through an aggressive property tax appeal program.
Commercial Real Estate development across the country took a significant fall since the economic downturn that started in late 2007. As bad as many Ohio real estate professionals may have thought it was locally, the results across the nation were even worse. Commercial construction spending in the U.S. dropped nearly 48% from 2007 levels of $549 billion to $288 billion in 2009. Respectively, Ohio fell only 23% from $12.5 billion to $9.6 billion in the same time frame.
Many Real Estate Appraisers would have you believe that the security for a hotel loan is simply the real estate. If this were the case, all lenders would require to see is a properties Deed of Trust. The fact is though, that when looking at the document that secures the loan, the title gives away what lenders really want: "Deed of Trust, Financing Statement, Fixture Filing and Assessment of Leases, Rents, Security Deposits and Hotel Revenue."
Office rents in the United States will see modest growth in 2011, the first increase in three years. A report from CB Richard Ellis Group tabs San Francisco, California as the market to most likely lead the way in terms of the largest gains. The city may see gains as high as 9 percent over the next two years. Phoenix, Arizona and Orange County, California are expected to be the followers behind San Francisco with increases of more than 4%.
The U. S. hotel industry is projected to end 2011 with increases in all three key performance measurements; occupancy, average daily rate and revenue per available room (RevPAR). STR Global recently released a forecast that projects occupancy to increase 1.8% to 58.5%, average daily rate to end the year up 4.2% to $102.21 and RevPAR to increase 6.1% to $59.78. Supply and demand are also both expected to increase in 2011 at 0.7% and 2.5% respectively.
Maintaining their strategy to buy hotels while the industry is early in its recovery, Host Hotels & Resorts will pay $570 million for the 1,625-room Manchester Grand Hyatt in San Diego, California. According to Commercial Real Estate Direct, Host believes that early cycle acquisitions tend to offer the best value in the hotel market. This pending sale boosts Host's deal-making volume since last summer to more than $1 billion.
Borders Group has filed for reorganization relief under Chapter 11 of the Bankruptcy Code, a forgone solution for the company by many analysts in the commercial real estate industry. According to an article from the National Real Estate Investor, Borders lacks the capital resources essential for it to move forward with its business strategy to reposition itself successfully for the long-term. Chapter 11 will give the company a chance to infuse capital and reorganize itself into a new position in the market.
Benchmark Senior Living will add their 34 senior housing communities to Health Care REIT's portfolio, combining to form an $890 million partnership between the two companies. Health Care REIT will have 95% partnership interest to Benchmark's 5%. According to GlobeSt.com, the partnership will continue to enhance Health Care REIT's growth potential as Benchmark has been able to produce exceptional NOI growth despite a rough economic client.
Some of Arizona's 2012 Real Estate Values have been mailed and Appeal Deadlines are quickly approaching. The new 2012 property values are out in some counties and will continue to be released throughout February and as late as into early March for Cochise County. The deadline to appeal these values is 60 days from the date they were postmarked.
Combining the shortage in the supply of rental apartments due to few projects being initiated in 2009 with the stabilizing economy, uncertainty in home prices and boosting demand, the multifamily sector will have a strong 2011. According to the National Real Estate Investor, despite slow economic growth in 2010, apartment vacancies fell to 6.6% by the end of the year after starting at a record high 8%. National rents grew by 2.3% over the same period, a huge rebound from the record 2.9% decline in 2009.
A recent proposal to relieve Michigan businesses of personal property taxes could mean additional lost revenue for local governments who are already struggling. According to the Battle Creek Inquirer, while it would obviously be good for the businesses involved, losing the personal property tax money with no way to replace it could mean bringing back past low revenue solutions like layoffs and service cuts.
Alexandria, Virginia City Manager James Hartmann recently proposed a tax rate increase of 12.5 cents per $100 in assessed value to be applied to commercial properties ONLY in Alexandria. The increase would affect about 2,250 businesses and would raise $180 million over ten years for local transportation.
The Council of The District of Columbia recently passed Bill 18-530 which amends Title 47 of the DC Official Code and thereby upgrades the District's real estate property tax appeal process beginning October 1, 2011.
The Wisconsin Manufacturing Property Assessment Self Reporting M-Forms are due March 1, 2011. Manufacturers can electronically file the following M-Forms online before the deadline:
In some markets, commercial real estate values have been able to soar more than 30% from their 2009 lows. According to The Wall Street Journal, properties like marquee apartment buildings in New York City, and office buildings in Washington, D.C., have seen values that are approaching pre-crash levels. Examples of improvement across the country include an office building in DC selling for $101 million a year after it sold for $41.3 million as well as various Atlanta, Georgia buildings selling at values last seen in 2007.
2010 Industrial leasing in Atlanta, Georgia totaled close to 15.2 million square feet, up 31% from 2009's total of 11.6 million square feet. This trend is expected to continue in the area as economic recovery progresses. According to GlobeSt.com, investor sales activity in Atlanta totaled over 6.2 million square feet, up 61% from the same time last year. Additionally, vacancy rates in Industrial properties throughout the city fell to 11.6% at the end of 2010 from 11.7% in the previous quarter.
Observers across the nation agree that the job market is recovering, with the U.S. job count having grown by 1.1 million since 2009. Unemployment has also fallen recently down to 9.4% at the end of 2010 from 9.8% in November. According to the National Real Estate Investor, differences in opinion occur with the outlook of 2011. Some think the coming year will show incremental job creation with a segment of the nations unemployed retuning to work, while others see employment growth in 2011 to outpace the previous year's gains by 200%.
Just like in the rest of the country, retail leasing took its fair share of hits in New York City during the economic downturn. Unlike the rest of the U.S. however, NYC is experiencing quite the turnaround, with fashion retailers leading the charge. According to GlobeSt.com, NYC is probably the only market in the country right now where retailers will pay for a showcase with a billboard attached; something not foreseeable at the moment in other large markets like Los Angeles and Las Vegas.
California property owners are suspect to facing harsh tax penalties if they do not quickly report change of ownership as local tax authorities are looking for ways to increase tax revenues as the state continues its struggles. According to commentary from the National Real Estate Investor, changing the ownership of a legal entity that holds the real property may trigger a reassessment, even if the property-owning entity remains the recorded owner of the underlying real property.