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News & Articles

By: Tax Advantage - December 14, 2022

WSJ: Falling Building Values Spur Tax Appeals

The Wall Street Journal is reporting that falling commercial property values (primarily office) is stimulating an increased interest in valuation appeals.  Their sources indicate that average office buildings have lost 25% of their value since the beginning of the pandemic and that assessors, in general, have only dropped their assessed values by 10%.  The article references Charlotte as having pre-pandemic values that are about to be updated.   However, informal conversations with county staff indicate a view that values haven’t declined.  That seems due to the strong sales activity from mid-2020 to the time that interest rates began to rise in early 2022.  During 2022, the number of commercial transactions has declined relative to prior periods complicating the county’s valuation process (kinda like 2009-2010).  Will current, recently changed, market conditions be reflected in Mecklenburg and other NC counties conducting January 1, 2023 reappraisals?  There is reason for concern.

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