- Record or near record levels of COVID infections, deaths and hospitalization as of January 1, 2021.
- Office occupancy and rental were lower, and occupancy rates are expected to fall further during 2021 as companies reduce space due to hybrid work format,
- Current and projected retail real estate demand is lower due to the accelerated migration of sales from brick and mortar to online, Apartment occupancy is lower due to tenants buying houses.
- Apartment collections are lower due to tenants not paying rent. CNBC reports 18% of tenants nationwide are delinquent on apartment rent with an average balance of $5,600.
- Land values are off due to sharply reduced purchased of land for new construction.
ENROLL NOW
Why was my commercial property tax assessment raised during COVID?
Great question. The property tax assessment is based on the value as of January 1 of the current year. Last year appraisal districts gave no consideration to the impact of COVID since it was not impacting value as of January 1, 2020.
With limited exemptions, commercial properties were lower as of January 1, 2021 (versus 2020):
About the Author
Patrick O’Connor has been active in reducing property taxes, providing expert witness testimony and appraising commercial real estate property since 1983. Pat is active in publishing analyses and data with respect to the real estate market, while being a highly regarded media spokesperson for the real estate community. He holds a MAI, the highest achievable designation from the Appraisal Institute, and is a licensed senior property tax consultant. Pat earned a Master of Business Administration from Harvard University. In 2001, he authored the first definitive consumer guide to Texas property taxes, Cut Your Texas Property Taxes.
Just read your article “Why Was My Commercial Property Tax Assessment Raised During COVID? “ Can you still file “substantial error” protest for my business personal property tax appraised value? It is much higher in 2021 by $3,000 vs year 2020. And I’m still using the same business “items” purchased since 2013. It should be depreciating. My cell # is 469.939.6691. I’m located in Dallas, TX.