Repealing Florida's 'Non-Homestead Exemption Cap' Could Result in Annual $700M Property Tax Increase

Written on May 17, 2018 at 12:54 PM

In November 2018, Florida voters have a chance to avoid a major property tax increase on owners of commercial or rental property, vacation or second homes, unimproved real estate, or any other non-homestead property. This tax increase will happen if the current 10 percent cap on non-homestead property assessments—scheduled to be repealed—is not reauthorized by the voters. A new report from Florida TaxWatch shows that a failure to make the exemption cap permanent could result in Floridians paying as much as $700 million more in property taxes annually. 

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Categories: Real Property, Florida

Are Philly's 'Unpredictable' Property Tax Assessments Threatening New Development?

Written on May 10, 2018 at 03:47 PM

In 2013, Philadelphia made a major overhaul of its property tax system after criticism that real estate throughout the city was severely undervalued. To fix the issue, former Mayor Michael Nutter forced a radical citywide reappraisal, known as the Actual Value Initiative. At that time, officials pledged to conduct annual citywide reassessments in order to bring the issue to final closure. But, in practice, Philadelphians have instead witnessed sporadic and sometimes seemingly inconsistent appraisals that have varied year to year. Now, the investment community is concerned the unpredictable reassessments may also be quietly eroding the viability of future development projects.

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Categories: Pennsylvania, Real Property

New Tax Plan Poised to Boost Multifamily Sector

Written on May 08, 2018 at 04:13 PM

The recently enacted U.S. tax reform is poised to benefit the U.S. multifamily investment market, according to a new report from CBRE that analyzes the implications of tax reform on the multifamily sector in the largest 35 U.S. markets. Tax benefits of renting vs. buying a home will increase in 29 of the 35 largest U.S. markets—up from just 15 markets before tax reform.

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Categories: Real Property, Apartments, Multi Family

JLL: How America’s Labor Shortage Impacts CRE

Written on May 02, 2018 at 12:03 PM

America’s labor shortage has reached a record high. According to JLL, companies in the U.S. are struggling to find qualified workers to fill open roles, and the problem is growing — as of January, 6.3 million jobs were unfilled, a 16 percent increase in the last year. The problem is wide ranging, though it most impacts roles that require a lot of education or training; high-level office jobs in IT and tech, and the skilled trades of qualified electricians, welders and carpenters. It’s a problem that threatens to slow the economy and impact commercial real estate, lowering rents and increasing vacancy across property types.

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Categories: Real Property

New Luxury Co-working Concept to Make U.S. Debut

Written on April 26, 2018 at 12:02 PM

The co-working industry continues to grow and evolve throughout the country, and a new high-end concept will open its first-ever U.S. location at an Atlanta mall. Luxury workspace provider No18 has signed a lease at The Shops Buckhead Atlanta and is slated to open in fall 2018.  No18 will occupy nearly 32,000 sq. ft. of space at the open-air center that spans six city blocks and features more than 50 stores and restaurants along a streetscape setting.

According to Chain Store Age, No.18 is described as a members club for businesses and will offer a range of curated, flexible workspace options in an upscale, sophisticated environment. No18 members will have access to a members lounge, premium private offices and dedicated desks. All members will be able to take advantage of the concierge-level services, fully equipped meeting rooms, and a luxe event area to host meetings and gatherings.

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Categories: Office, Georgia, Real Property, Retail, Malls

E-Commerce Demand Drives Major Valuation Increases for Houston Warehouse Properties

Written on April 17, 2018 at 10:56 AM

By Amanda Moore, Managing Consultant, Houston

Harris County, Texas has released the vast majority of their 2018 notice values for commercial real estate. They’ve come out especially strong in the industrial sector with warehouse properties seeing a 12% increase over the 2017 certified values and a 6% increase over the 2017 noticed values.

Harris County says Houston is becoming an “industrial hub” due to the rapid growth in e-commerce driving high demand. The county points to flat vacancy rates at 5% and increasing asking rental rates to support their position on the warehouse market. Of the 6.4 million SF of warehouse product under construction, 29.3% is pre-leased. The price at which warehouse product is trading is also increasing - $77 PSF vs. $67 PSF in the prior year. Port of Houston is emerging as a key national distribution region, further fueling the fire for increasing warehouse values with decreasing cap rates YOY. 

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Categories: Distribution Centers, Industrial, Real Property, Paradigm Info, Texas, Warehouse

U.S. Food Halls Expected to Triple by 2020

Written on April 13, 2018 at 02:03 PM

The country has shown its large appetite for food halls has yet to be satiated. Appealing to the desire for entertaining and interactive experiences in today's retail projects, food halls are exploding in popularity. The open eatery concepts offer an array of choices to satisfy anyone's taste buds and provide communal seating and co-working space for groups to socialize or work on a project. Food halls are a great option for developers looking to drive traffic to their mixed-use project and diversify their offerings. 

Between 2015 and 2020, the number of operating major food halls will triple to 300 nationwide, according to a new report on food halls by Cushman & Wakefield. At the end of 2015, when the brokerage began tracking food halls, there were 70 active food hall projects in the U.S., which rose to 86 by the end of 2016 and to 118 at the close of 2017. There should be as many as 190 open by the end of this year, as per the report.

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Categories: Real Property, Retail

New Jersey Taxing Jurisdictions Engaging in "Reverse Assessment Appeals"

Written on April 03, 2018 at 01:02 PM

In many areas across the country, such as Pennsylvania and Ohio, it has become a common, albeit controversial, practice for taxing jurisdictions to file "reverse tax appeals" against commercial property owners. These jurisdictions track property sales, specific asset types (e.g. apartments), and other information in order to gauge potential opportunities to seek higher commercial property valuations and boost their real estate tax revenues.

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Categories: New Jersey, Real Property, Paradigm Info

Berrios Concedes to Kaegi in Contentious Cook County Assessor's Race

Written on March 21, 2018 at 11:08 AM

Amid a great deal of scandal and political fallout, beleaguered incumbent Joe Berrios conceded to challenger Fritz Kaegi Tuesday night in the primary contest for Cook County assessor as vote totals showed him far behind. Berrios has been facing backlash over the past year for reports that found his office unfairly shifted the tax burden from wealthier property owners to the poor and middle class. His ethics were also under scrutiny due to his history of accepting campaign contributions from attorneys who handle property assessment challenges and for employing family members. 

According to the Chicago Tribune, if Kaegi’s victory stands — a third candidate filed a legal challenge Tuesday evening — it would also mark a loss for the Cook County Democratic establishment Berrios leads and for his ally, state party Chairman Michael Madigan. With 96 percent of the ballots counted, Kaegi had 45 percent of the vote to Berrios’ 34 percent, according to unofficial election night results. The other candidate, Andrea Raila, had 21 percent.

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Categories: Real Property, Illinois

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

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