Cincinnati is the most cost-friendly city to do business among the 31 largest U.S. metro areas (those with populations of 2 million or more), according to the 2016 Competitive Alternatives study by KPMG LLP. Cincinnati's favorable leasing costs and low property taxes contributed to its first place ranking in the study, which compares key cities across a range of costs and other factors related to doing business. Orlando, Fla., was the second most cost-competitive location in the large-cities category, followed closely by Tampa, Fla., Cleveland, and San Antonio. Other locations ranked among the top 10 large U.S. cities included Atlanta, Charlotte, N.C., Miami, St. Louis and Kansas City, Mo.
U.S. commercial property sales took a nosedive last month, which may signal the six-year bull market is coming to an end. Just $25.1 billion worth of commercial real estate changed hands in February, compared with $47.3 billion in the same month a year earlier, according to deal tracker Real Capital Analytics Inc. In January, sales were $46.2 billion. Prices, which had been on a steady march higher since 2009, are beginning to plateau, and have started falling in certain sectors and geographies, according to analysts and market participants. Green Street’s broad valuation index in February was 8.7% higher from one year earlier, but in the previous year the index rose 11%.
The Texas Property Tax Code dictates that no property should be assessed at a value higher than a reasonable number of competing, appropriately adjusted comparable properties. Why should this matter to the owner of a Quick Service Restaurant (QSR)/fast casual property under development or renovation? The answer lies in the various nuances related to QSR construction, renovation, and operational costs that need to be considered to ensure a fair valuation.
To learn more, click below to download an informative article written by Senior Managing Consultants James Sutton and Sid Underwood located in Paradigm's Dallas office.
Don’t Forget: The Texas Real Estate Valuation Appeal Deadline is May 31st. For more information, visit our Texas Offices page.
Wake County Commissioners unanimously agreed to four-year property tax reappraisal cycle starting in 2020, in an effort to improve accuracy from the current eight-year cycle. While the more frequent property appraisals will likely lead to more frequent tax bill fluctuations, county commissioners said they hope the additional appraisals will lead to more accurate property values, fewer appeals, and improved operations. However, critics of the new reappraisal cycle say it will result in a “backdoor tax increase.”
By Domingos Santos, Managing Consultant, Arizona
Last month a bipartisan group of state lawmakers, Mayor Jim Kenney, and local civic and business leaders gathered in Philadelphia's City Hall Friday to announce a legislative plan that would amend the state's Constitution to allow the city to increase the commercial real estate tax rate. Rep. John Taylor (R-Philadelphia) and Rep. William Keller (D-Philadelphia) introduced the legislation last week, which would allow Philly to opt out of the state's uniformity clause, which says the commercial real estate tax rate cannot vary by more than 15 percent from the rate applicable to other real estate.
As the convenience of urban living becomes a bigger and bigger trend - so does its counterpart, the multi-use property. New developments bringing together retail, restaurants, apartments, and office space all under one roof are springing up all over major cities. While this provides a great deal of convenience for the consumer, it's causing a headache for Appraisal Districts trying to appropriately value such complex properties.
As Montgomery County faces a fast-growing school system and lost revenue from last year’s Supreme Court ruling that Maryland’s income tax system was unconstitutional, a property tax increase has been proposed as the solution. Montgomery County Executive Isiah Leggett proposed a $5.2 billion operating budget for the fiscal year beginning July 1, which goes to the County Council for consideration, that would increase government spending by just under 2 percent. It lifts the property tax rate by 3.94 cents per $100 of assessed value, from 98.7 cents to $1.02.
The San Francisco Planning Department is increasing its efforts to crack down on landlords who lease industrial buildings zoned for manufacturing, automotive repair, warehousing or the arts to office tenants, launching 21 investigations already this year. According to the San Francisco Business Times, the heavier enforcement is all part of effort to make sure areas zoned for production, design and repair (PDR) are kept open and ready for tenants that qualify as "makers" – a group that's been steadily pushed out of the core of San Francisco as rents rise and pricier tech tenants replace them. In 2015, the Planning Department opened 108 cases investigating industrial space leased out for offices, a major leap from four in 2014 and two in 2013, the San Francisco Chronicle reports. The city says that increase reflects how difficult it has become for manufacturers to find space in the nation's most expensive office rental market.
After concluding its first county-wide reassessment since the late 1970's, Washington County, Pennsylvania has started issuing new valuation notices to property owners. Two separate notices will be sent regarding the new values, effective for the 2017 tax year.
Kansas lawmakers are set to battle over a measure that would accelerate the implementation of a property tax lid law passed last year. Under the state law, city and county governments will have to hold a public vote if they want to raise spending by more than an adjusted Consumer Price Index rate to be set by the state of Kansas. If voters don’t approve spending increases, cities and counties will have to cut their property tax rates to adjust to the spending level allowed by the state. As it stands, the property tax lid will start in January 2018, but Gov. Sam Brownback wants that date moved up to this July.
The interest rates that banks borrow money from the Federal Reserve have been near zero for over 6 years now, and commercial real estate investors have greatly benefited from the low interest rate environment. However, when the Federal Reserve recently raised the rate by 25 basis points at the same time that oil prices reached record lows, it caused the global economy to start rapidly crashing. There was nearly a 6% decline in January 2016 and over one trillion dollars of value lost within the Stock Market – the worst economic performance in a single month since 2009.
As the Minnesota Legislature decides what to do with the $900 million state budget surplus projected for the remainder of the fiscal biennium through June 2017, a major focus of the Minnesota Chamber of Commerce will be lowering state business property taxes. The chamber is pushing for several business-friendly measures, and President Doug Loon said adapting the chamber’s tax strategies will increase state competitiveness, performance and prosperity.
Once again, New Jersey and Illinois ranked as the two worst states in the country when it comes to property taxes, according to a new survey from personal finance website WalletHub. In order to identify the states with the highest and lowest property taxes, WalletHub’s analysts compared the 50 states and the District of Columbia using U.S. Census Bureau data to determine real-estate property tax rates. While property taxes vary from county to county across the state, WalletHub divided the “median real-estate tax payment” by the “median home price” in each state to determine the property tax rate.
Pittsburgh is beginning to look like the country’s next up and coming tech hub, as Facebook announced in January that it would open a research center for its Oculus virtual-reality division in the city, becoming the latest in a string of major tech companies, including Google, Apple and Uber, to open offices in the city in the past few years. But can Pittsburgh make the jump from its prominent role in the steel industry to emerging tech hub? A lot of factors would point to yes, but no matter what happens, savvy real estate investors will keep Pittsburgh on their radar as it continues to attract the attention of tech giants.
In the Property Tax World, the Central Appraisal Districts are mass appraisers. The larger metro CADs handle hundreds of thousands of properties with numerous data fields. When you consider that the in-house appraisers are making some subjective decisions about how to class a property, with administrative staff keying in factual data about a property, well, one can imagine how an error can occur. And they do occur.
The Kansas Supreme Court recently struck down a state law that gave property owners who successfully challenged the appraised value of their property a two-year moratorium from any increases in tax valuation, except in some narrowly defined circumstances. The boards of county commissioners from 21 counties, including Johnson and Wyandotte, filed a lawsuit last year against Kansas Secretary of Revenue Nick Jordan and the state’s director of property valuation.