Real Property Assessment Information
The overall value of Alexandria’s taxable property increased 6.29% compared to January 2021, although each individual property’s value may have increased, decreased or remained unchanged. The equalized tax base increased by approximately $2.93 billion, including $2.07 billion in appreciation of existing properties and $857.64 million in new development or improvements.
Like most Northern Virginia jurisdictions, the 2022 assessments were mixed with housing experiencing strong demand after a brief lull attributable to the COVID-19 pandemic. Year-over-year, average residential values increased 6.91%, while commercial assessments increased 5.34%. Overall, locally assessed taxable real property increased 6.29%. This marks the twelfth consecutive year that the City’s overall assessed value has increased.
The Residential Market
Residential market conditions are strong with demand far exceeding the available supply due to low unemployment and low interest rates. Market support is provided by a significant number of high paying jobs and the prime location inside the Capital Beltway with four Metro stations and a fifth at Potomac Yard planned to be operational in 2022. Simply stated, the City of Alexandria is considered a desirable place to live and work.
- As of January 1, 2022, the average equalized value of existing residential property, including single-family and condominium was $655,901, an increase of 5.36% from the average equalized value of $622,506 in 2021.
- The average single-family house for 2022 is assessed at $896,176, an increase of 6.44% from the average equalized single-family value of $841,964 in 2021.
- The average 2022 residential condominium is assessed at $398,470, an increase of 2.81% from the average equalized condominium value of $387,597 in 2021.
- For 2022, 82% of residential properties increased, 3% decreased, and 15% were unchanged.
The Commercial Market
On a year-over-year basis, the commercial property tax base increased by 5.34%. Much of the growth was attributed to an increase of 10.33% in the multi-family rental sector which included $398.6 million in new growth. Class A projects were boosted by rising rental rates and declining vacancy.
Industrial and self-storage properties increased 15.36%. The substantial increase in the City’s industrial inventory was supported by continued demand by owner occupants, e-commerce operations, and endpoint distribution facilities.
The pandemic continues to adversely impact the hospitality and office sectors, decreasing 12.15% and 6.47%, respectively. The general malaise in the conventional office market continues as teleworking has developed into a routine way of doing business, which has negatively impacted demand, increased vacancy and tenant concessions, and lowered effective rents. Class A core assets remained relatively stable with moderating rental rates and vacancy issues.
Despite the pandemic, capitalization rates were stable for most property types. The top tier investments were multi-family rental projects and commercial/industrial assets that traditionally lease on a triple net basis; particularly those that provide essential everyday goods and services.
The Office of Real Estate Assessments (OREA) encourages commercial property owners to file an annual Income and Expense Survey. These can be filed in writing or electronically. Instructions for completing the survey are available on the Office’s website at alexandriava.gov/realestate. The surveys will be mailed in early March and have a filing deadline of May 1. Continuing in 2022, the OREA has streamlined the billing process for properties comprised of multiple parcels but functioning as one economic unit. Here, the parent parcel reflects the total property value (including ancillary parcels). This eliminates multiple bills and reduces the cost of postage. Previously existing accounts are maintained in the system, but have no value associated with them. No property rights are lost by the owner. Property owners will be notified by the Office of Real Estate Assessments as new group accounts are created.