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 2.0%, while commercial property values during the same period increased by 3.6%. The total 2019 locally assessed real property tax base increased 2.7% from the previous year. This marks the ninth year in a row that assessed values have increased after two consecutive years of declining values in 2009 and 2010.
The Residential Market
Housing market conditions in Alexandria are improving due to low unemployment, low interest rates, a constrained supply in combination with pent-up demand, the significant number of high paying jobs, and Alexandria’s prime location inside the Capital Beltway with four operating Metro stations.
- As of January 1, 2019, the average equalized value of existing residential property, including single-family homes and condominiums, was $555,002, an increase of 1.9% from the average equalized value of $544,601 the previous year.
- The average single-family house for 2019 is assessed at $764,596, an increase of 1.4% from the previous year when the average single-family assessment was $754,337.
- The average 2019 residential condominium is assessed at $329,216, an increase of 3.3%, from the 2018 average of $318,730.
- For 2019, 53% of residential properties increased in value, 10% decreased, and 37% were unchanged.
The Commercial Market
Commercial assessment increases in 2019 were found in most sectors. On a year-over-year basis, the commercial property tax base increased by 3.6%. Much of the increase is due to the completion of construction projects during 2018 and multi-family rental apartment projects completed over the last several years, which are now filling with tenants.
Alexandria’s office market flattened 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, 2019 capitalization rates remained unchanged in several commercial sectors for Class A, investment-grade property in close proximity to Metro. Overall, the commercial property sector, excluding multifamily rental and vacant land, increased 3.6% on a year-over-year basis in 2019.
The City encourages owners of larger commercial properties to electronically file Income and Expense Surveys using our web-based reporting system. Instructions for completing the survey are available at alexandriava.gov/RealEstate. Income and Expense Surveys will be mailed in early February and have a filing deadline of May 1. Continuing in 2019, the Finance Department has also streamlined the billing process for properties comprised of multiple parcels that function as one economic unit. The parent parcel, usually the one that has the most value, now reflects the total property’s value (parent and ancillary parcels). This eliminates the need for multiple bills and reduces the cost of postage. Previously existing accounts for multiple parcels were maintained 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.