Real property assessments in the City of Alexandria continue to perform similarly to those in other Inner Ring Northern Virginia markets. On a year-over-year basis, residential values posted an increase of 3.40%, while commercial property values during the same period increased by 0.93%. The total 2018 locally assessed real property tax base increased 2.35% from the previous year. This marks the eighth year in a row that assessed values have increased after two consecutive years of declining values in 2009 and 2010.
The Residential Market
Improving housing market conditions in Alexandria are due to relatively low unemployment, low interest rates, a constrained supply in combination with pent-up demand, the significant number of high paying jobs, and its prime location inside the Capital Beltway with four operating Metro stations.
- In 2018, the average equalized value of existing residential property, including single-family and condominium is $547,626, an increase of 3.33% from the previous year.
- The average single-family house is assessed at $752,585 an increase of 3.40%.
- The average residential condominium is assessed at $324,024, an increase of 3.15%.
- For 2018, 77.37% of residential properties increased in value, 12.61% decreased, and 10.02% were unchanged.
The Commercial Market
Commercial assessment increases in 2018 were found in the apartment and warehouse sectors. On a year-over-year basis, the two sectors increased 7.68% and 10.99%, respectively. Much of the increase is due to the completion of construction projects and the lease-up of apartment projects delivered in previous years.
The City’s office market declined and continues to face challenges due to a general lack of demand, tenant concessions, lower effective rents and continued space compression upon renewal. Despite current market conditions, 2018 capitalization rates remained unchanged in several commercial sectors for Class A, investment-grade property in close proximity to Metro rail. Overall, the commercial property sector, excluding multifamily rental and vacant land, decreased 3.51% on a year-over-year basis in 2018.
By leveraging technological resources to gain efficiencies, the Office of Real Estate Assessments (OREA) continues to make it easier for larger commercial property owners to electronically file Income and Expense Surveys using our web-based reporting system. Instructions for utilizing the application are available on the Office’s website at alexandriava.gov/realestate. Income and Expense Surveys will be mailed in early February and have a filing deadline of May 1. Continuing in 2018, the OREA has also streamlined the billing process for properties that are comprised of multiple parcels. The parent parcel, usually the one has the most value, will now reflect the total a property’s value (parent and ancillary parcels). This eliminates the need for multiple bills and reduces the cost of postage to the City. This process applies only to those properties that are comprised of multiple parcels that function interrelated as one economic unit. Previously existing accounts are maintained in the system, but have no value associated with them. No property rights are lost by the property owner. Property owners will be notified by the Office of Real Estate Assessments as new group accounts are created.