How to Use ‘Equal and Uniform’ to Reduce Multi-Family Property Values in Texas

Written on March 14, 2018 at 04:02 PM

By James Sutton, Regional Director - Central South, Dallas
& Bill O’Quinn, Senior Managing Consultant, Dallas

To say the multi-family market in the Dallas-Fort Worth metropolitan area is performing well would be an understatement. Deliveries were up 14 percent in 2017, vacancies were down 4 percent, rental rates were up nearly 7 percent, and cap rates were down almost 20 basis points. From a property tax standpoint, factoring all of these variables into an income approach to valuation would support higher assessed values at the appraisal district level. While this may be the case, there is another valuation method that needs to be considered before giving up on your property tax appeal.

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Categories: Real Property, Apartments, Paradigm Info, Multi Family, Texas

Downtown L.A. Starting to Mirror Manhattan's Glut of Apartments

Written on March 01, 2018 at 04:26 PM

More than 4,000 new apartments are forecast to hit the Los Angeles market this quarter, according to CoStar, as the first wave of as many as 30,000 in the next three years. Much of the construction is concentrated downtown, where it’s easier to build than in other parts of L.A., and almost all the new apartments will be at the higher end of the market. Signs of rent weakness are emerging as construction approaches peak, and L.A. landlords could be facing similar pains as as their counterparts in Manhattan, where a flood of supply has started to drive down rents.

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Categories: Real Property, Apartments, Multi Family, New York, California

Mixed-Use Properties Create Valuation Challenges for Texas Appraisal Districts

Written on February 21, 2018 at 02:48 PM

By Alex Pace, Managing Consultant, Dallas

Mixed-use properties continue to gain popularity in response to the growing desire for the convenience and walkability of urban living. Savvy real estate developers and owners understand that providing a vibrant mix of office and living space, restaurants and retail under one roof allows them to meet – and capitalize on – a variety of consumer needs. While implementing a “live-work-play” concept certainly adds value to a project, the relatively new and complex nature of a mixed-use property is creating valuation challenges for Appraisal Districts that could be costing you.

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Categories: Office, Real Property, Hospitality, Retail, Paradigm Info, Multi Family

Stay Committed: How to get the most out of your Texas property tax appeal

Written on February 13, 2018 at 12:33 PM

By Carlos Villatoro, Senior Managing Consultant, Dallas

It is no secret that significant commercial real estate investments continue to pour into the great state of Texas. However, if an owner isn’t lucky enough to receive major tax breaks from local jurisdictions as an incentive to invest here, they will have to accept some of the highest effective property tax rates in the country. The tradeoff is that Texans enjoy a relatively low sales tax rate and zero state income tax rate. Fortunately, the Texas Property Tax Code offers multiple appeal recourse avenues, which allow owners and tenants alike to review the property tax liability from a fair and competitive standpoint.

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Categories: Personal Property, Office, Industrial, Real Property, Hospitality, Retail, Paradigm Info, Multi Family, Texas

Which CRE Sectors Will Benefit the Most from Tax Reform in 2018?

Written on January 08, 2018 at 12:29 PM

The commercial real estate industry will benefit as a whole from the tax code overhaul signed into law Dec. 22. But some sectors will benefit more — and sooner — according to top economists polled in a Bisnow article. 

  • Retail: The retail sector will likely be the biggest beneficiary, Colliers Chief U.S. Economist Andrew Nelson said, because of the lowering of the corporate tax rate. The tax reform law reduces the corporate tax rate to 21% from 35%, but because of deductions, not all types of businesses had effectively paid that same higher rate. "Retailers traditionally pay a high corporate tax rate because they don't have the same kind of deductions as other sectors," Nelson said. "When you lower the corporate rate overall, retailers tend to benefit a lot." 
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Categories: Office, Hospitality, Retail, Multi Family

Navigating Property Taxes for Student Housing

Written on December 18, 2017 at 01:50 PM

Property tax professionals lend their expertise on tackling student housing property taxes.

By Amy Bigley Works | Student Housing Business

Managing property taxes and ensuring the best valuation can be challenging for any commercial real estate property type, but for student housing owners and operators the process can be even more daunting. Student Housing Business spoke with student housing property tax experts to gain insight and recommendations for coming out ahead in the property tax and property valuation. Larry Backus, North Texas market leader, was one of the experts to share his knowledge and expertise on property tax for the student housing industry.

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Categories: Real Property, Paradigm Info, Multi Family, Student Housing

Amenities Arms Race: Apartment Trends to Watch

Written on December 07, 2017 at 10:42 AM

Amenities continue to be a hot topic in the multi-family industry, with apartment developers competing to attract and retain tenants amidst the growing shift from homeowning to renting. Both millennials and empty nesters are driving demand for apartment space as they continue to forego homeownership. The U.S. homeownership rate was 63.9 percent in the third quarter of this year, similar to the 63.5 percent in the third quarter of 2016. The rate is up 100 basis points from second-quarter 2016 when homeownership reached its lowest level since the Census began tracking it in 1965. 

In a recap of the architecture and design panel at the eighth annual InterFace Multifamily Southeast conference, REBusiness Online identified the top amenity trends for apartment developers:

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Categories: Real Property, Apartments, Multi Family

CRE Has Been In Ninth Inning For Two Years

Written on November 29, 2017 at 10:42 AM

Many are predicting a leveling out of the commercial real estate market in the coming year. Texas Market Leader James Sutton discussed 2018 commercial real estate trends and the implications of the leveling-out process in the Houston market in this EXCLUSIVE with What are the commercial real estate trends you are seeing in Houston for 2018?

Sutton: Decrease in overall vacancy for industrial properties, as well as a decrease in overall vacancy, increase in rent growth and zero concessions for multifamily properties. In addition, there will be a reduction in office sublease space as a result of the storm (Harvey). This is a short-term correction as a result of the office sector’s issues stemming from the energy market decline.

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Categories: Office, Industrial, Real Property, Retail, Paradigm Info, Multi Family, Texas

Chicago Commercial Property Sales on Pace for Three-Year Low

Written on October 23, 2017 at 03:47 PM

Over the past two years, Chicago-area landlords have capitalized on a strong economy and low interest rates by selling properties at a rapid pace. But after a whirlwind couple of years of real estate sales transactions, deal volume in the Chicago area is finally slowing down. Sales of commercial properties year to date through August were down 20 percent from the same period in 2016, to $9.8 billion, according to New York-based research firm Real Capital Analytics. While nearly $10 billion is still far more action than there was coming out of the Great Recession, it's the lowest amount spent on office, industrial, retail, apartment and hotel properties in the market through the first eight months of the year since 2014.

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Categories: Office, Industrial, Real Property, Retail, Hotels, Multi Family, Illinois

Affordable Housing Developers Face New Obstacles

Written on September 20, 2017 at 04:34 PM

Affordable housing developers are facing more production challenges despite the growing need for affordable housing projects. The most important government program that helps fund new affordable housing - the federal Low Income Housing Tax Credit (LIHTC) program - is providing less funding in 2017 than it did in prior years. At the same time, constructions costs (land, labor and material) for all types of developers are rising in most markets. These obstacles will likely result in less affordable housing development and preservation projects compared to 2016, even though numerous studies reporting a greater need. 

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Categories: Real Property, Multi Family




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