The COVID-19 pandemic has created substantial challenges for many commercial property owners in Alexandria, Virginia.
Despite these challenges, overall real estate assessments are up for the eleventh consecutive year, thanks to appreciating home values.
The Commercial Market
Alexandria’s hospitality properties saw a decline of 29.64% in 2020. The retail market sector was down 10.72%. The pandemic also exacerbated the malaise within the office market by negatively impacting demand, vacancies, and effective rents. Overall, office assessments decreased 6.52% from the previous year.
Capitalization rates trended upward. For Class A core assets, cap rates increased by 50 to 100 basis points. Lesser quality assets were priced at levels 125 to 200 base points higher.
Appeals will be Necessary
The deadline to request a Review of Assessment is March 15th and the deadline to file an Appeal of Assessment with the Board of Equalization is June 1.
Other important dates include:
May 1: Deadline for filing 2020 Income and Expense Surveys
Early May: Real estate tax bills mailed
June 17: Deadline to pay first half of real estate tax due, regardless of review or appeal
November 15: Deadline to pay second half of real estate tax due