Though apartment rents continue to grow across the country, they have slowed from their peak pace during the summer of 2011. According to the National Real Estate Investor, it is predicted that average apartment rents will settle into a steady pace of growth over the next few years, similar to rental markets in the mid- 1990s, as occupancy rates stay very high. As it stands, close to 95% of apartments are currently occupied after the slightest of a dip in July.
New companies are starting to offer services and information that is leading to putting office tenants and landlords together without brokers. According to The Wall Street Journal, the new companies are targeting different parts of the leasing process. One, View The Space, allows landlords to post videos of their spaces online, while another, CompStak, is creating a database of confidential details of leasing deals through crowd sourcing. This is where brokers and other real estate professional gain access to the database in exchange for anonymous information.
Manufacturers in Indiana are required to pay property taxes on almost everything they own and need in order to conduct business on a daily basis. According to News-Sentinel.com, This means that businesses pay taxes on every machine, device, tool or piece of equipment they own, every year. This is basically the state taxing everything needed to start, maintain and grow a business, and leads to many businesses moderating their capital investment due to tax implications.
A recent article in HotelNewsNow.com discusses the considerations for choosing, compensating and evaluating third-party consultants hired to manage hospitality property tax expenses.
Seven Silicon Valley tech companies combined to spend over $1.1 billion on equipment and furnishings for expansions last year. The driving factors behind such expansion are mainly cloud computing and the Internet. According to MercuryNews.com, that growth is reflected in data compiled annually by the Santa Clara County Assessor's Office, which taxes business personal property such as computers, servers, copiers and office furniture separately from land and buildings.
Grocery chains are beginning to claim the shopping centers they anchor to avoid inherited risks that come with the uncertainty of a new owner. According to Retail Traffic, the biggest grocery chains in the U.S. have invested nearly $450 million in grocery-anchored center purchases during the past 24 months. As many have the first right of refusal when a property is for sale, this leads to many chains desire to control their own destiny and take advantage of the opportunity to buy the whole center.
An audit on the D.C. Office of Tax and Revenue shows a handful of managers had the ability to alter assessed property values without being detected. According to The Washington Post, the audit points to vulnerability in the way managers interact with the city's mass appraisal computer system, which acts as the main repository of information on the city's property values and is used to calculate tax bills. The audit did not find any examples of wrongdoing.
The repeal of business personal property taxes in Idaho has its best chance of getting through the Legislature in 2013. According to IdahoReporter.com, the business personal property tax has been a hot button item for the last couple of legislative sessions with some lawmakers and business groups trying to repeal it, and an effort is planned in the 2013 legislative session to get rid of the tax altogether with the Idaho Association of Commerce and Industry (ICAI) leading the charge.
Improved manufacturing fundamentals, including increased jobs and exports and decreased vacancy rates, continue to prove that the market is displaying the signs of a recovery. According to Cassidy Turley, with both domestic and global consumption rebounding, albeit at a choppy rate, America has seen steadily increased production of vehicles and parts, semiconductors, civilian aircrafts, clothing, fuel oil, and commodity-based food items to name a few.
In order to speed up the reassessment process, Allegheny County, Pennsylvania officials are urging commercial property owners upset over tax assessments to waive their formal appeal hearings and take their complaints to court. According to the Tribune Review, the officials are reaching out actively to property owners and representatives to bring their evidence to court in order to get the values correct, because in December the school district and city will have to set their millage rates for 2013 based on the 2013 certified value.
Minneapolis, Minnesota Mayor, R.T. Rybak, has released his recommended 2013 budget for the city, with significant investments city-wide. The source of funding in order to deliver these investments will be a 1.7% property tax increase, which is below-inflation and half of what it would have been if City Council had not secured and passed the Vikings stadium deal that gave Minneapolis full control of a set of hospitality taxes that help reduce the property tax burden of the Target Center.
Kentucky Lieutenant Governor, Jerry Abramson, has said that a sweeping overhaul of the state's tax code is not in the works. According to WFPL News, while the tax commission would like to see a major change in tax code, the reality is that things move forward incrementally in state government and a grand reform bill is unlikely to pass the legislature.
More and more commercial properties are exiting the distressed category than added to it, as it appears the real estate market it towards the end of this brutal cycle. According to World Property Channel, in the second quarter of this year, Real Capital Analytics (RCA) identified the lowest amount of distress in the commercial real estate market in some time, meaning investors waiting for them to show up at their doorstep are out of luck.
Despite the dragging economy, the US hotel industry continues to experience strong demand as over 500 million room nights were sold in the first half of 2012, a new record. According to USA Today Travel, as hotels continue to fill more rooms, pricing power is firmly in the hands of the general managers and revenue managers, so room rates increased as well. Still though, of the top 25 markets, only New Orleans and San Francisco have reached and surpassed their pre-recession room-rate-peaks.
The tax extenders bill approved by the Senate Finance Committee includes a reinstatement and extension of the 15-year leasehold improvement provision through 2013. According to World Property Channel, this is good news for commercial real estate owners as the legislation allows leasehold improvement construction costs to be more accurately aligned with the income generated by tenant leases. Owners will now wait to see if it passes the full US House and Senate this fall.
Paradigm Tax Group is pleased to remind you that the property tax appeal deadline for properties located in specific Pennsylvania counties is September 1st. In today's economic climate, it is perhaps more important than ever before to confirm the correct appraised value of your property for real estate tax purposes.
Compared to the same period last year, commercial real estate sales and leasing in Rhode Island have shown multiple signs of improvement in the first half of 2012. Prices, however, still remain stagnant. According to PBN.com via Capstone Properties, sale and leasing activity in the first six months of the year was broader based and spread out over more categories and sizes. The lack of price increases remains a concern, but the re-entry into smaller markets calls for optimism.
The Washington, D.C. Office of Tax and Revenue has settled on several commercial property value reductions to the tune of $2.6 billion on some of the city's most influential developers. According to The Washington Post, the settlements reduced the 2012 assessments of more than 500 commercial properties, where some owners saw the value of their multimillion-dollar properties lowered by 40% or more, shaving up to hundreds of thousands of dollars off their tax bills.
The Kalamazoo City Commission has voted to shorten the duration of tax abatements for businesses to six years for real and three years for personal property. According to Michigan Live, commissioners also approved a new charge for tax abatement applications, raising the city's fee from $1,000 to $1,500 to put it in line with the cost of processing each application. The move to shorten the abatement period was largely motivated by the fact that 53% of the city's taxable properties are off the tax rolls in the city.
Debt issues slowed down the commercial real estate recovery over the second quarter after a strong first. According to the National Real Estate Investor, commercial real estate brokers and researchers are seeing a stall in momentum with the strongest activity still confined to a few large cities, while large parts of the rest of the country are still working out the wreckage of the real estate crash. Overall, year-over-year gains are not on par with what was being seen last year.
Outside of primary markets and the multi-family sector, commercial real estate market and capital conditions have weakened again. According to Market Watch, a recent survey released by The Real Estate Roundtable underscores the fragility and unevenness of the commercial real estate recovery which closely tracks the pace of the broader U.S. economic recovery and which remains limited to top-notch assets in major metro markets.
In a scenario that is proven to be quite common in New York City, property owners are failing to report money received from renting billboards on their buildings, evading tens of thousands of dollars a year in property taxes. According to The New York Times, owners are even going further by appealing to the city for a reduction in taxes. Now it is being called for New York City's property tax system to be changed in order to prevent false document filings.
Paradigm Tax Group is pleased to remind you that Florida 2012 proposed property tax bills, also referred to as TRIM notices, will be mailed in August and the filing deadline dates are during September, or 25 days from the date of the proposed notice. The actual deadline date will be indicated on the bottom of your Notice of Proposed Taxes (TRIM Notice). The deadline dates are specific per county and can vary during the month of September.