On Friday, January 14, 2022, Arlington County released its 2022 real estate assessments. The overall total assessed value of all residential and commercial property increased 3.4%, compared to 2.4% in 2021. Residential property values increased 5.8% overall, while commercial property values increased by 0.6%. The increases in 2021 and 2022 can be perceived as modest, but the local Ryan experts feel this is a clear indication market value has not reflected the impacts of the pandemic on businesses. Most properties in the county were assessed well over true market value and generally not corrected in the appeal process in recent years.
The increase indicates a recovery is underway for the multifamily and hotel industries, with apartment property values increasing 5.3% year over year. Occupancy and room rates gradually recovered, resulting in an increase of 5.6% for hotel property owners after experiencing double-digit decreases in 2021.
Some commercial property types such as malls, restaurants, gas stations, and retail locations continue to feel the impact of the pandemic, resulting in a decrease in value. Office property values also decreased as a result of rising vacancy rates and changing demand for office space.
The Board of Equalization appeal deadline is April 15, 2022. Income and Expense forms are due March 1, 2022 and must be received in advance of filing an appeal.
We strongly recommend that all commercial real estate owners and managers in Arlington County closely review their 2022 proposed assessments to determine if they reflect market value as of January 1, 2022. If you are not certain or need assistance navigating the process, Ryan’s local experts are available to help and handle appeals to mitigate any errors.
Read Ryan’s tax development Virginia Supreme Court Grants General Services Administration Building Valuation Reduction to see how we recently assisted a client in the Virginia Supreme Court.
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