The total 2016 locally assessed real property tax base increased 2.81% from 2015. This marks the sixth year in a row that assessed values have increased after two consecutive years of declining values from 2009 to 2010.
The Residential Market
Improving, but moderating 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. This optimistic outlook is tempered by the Federal Reserve’s move to reverse its quantitative easing policy in favor of a market-based mortgage industry which could result in higher interest rates in 2016.
- In 2016, the average value of existing residential property,
including single-family and condominium is $521,227, an increase of 1.88% from
the previous year's equalized values.
The average single-family house is assessed at $720,701, an
increase of 2.25%.
- The average residential condominium is assessed at $306,883, an
increase of 0.94%.
- For 2016, 53.9% of residential properties increased in value, 18.1% decreased, and 28% were unchanged.
The Commercial Market
Commercial assessment increases in 2016 were primarily driven by property appreciation and project stabilization in the multi-family market that increased 4.35% on a year-over-year basis. Additional gains were reported in the general commercial properties which increased by 5.43%. The City’s office market is flat 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, 2016 capitalization rates remained unchanged or even compressed for Class A investment-grade property in close proximity to Metro rail. Overall, the office sector increased 1.46% on a year-over-year basis.
By leveraging technological resources to gain efficiencies, the Office 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 ’s website at www.alexandriava.gov/realestate. Income and Expense Surveys will be mailed in early March and have a filing deadline of May 2. New in 2016, the OREA has streamlined the billing process for properties comprised of multiple parcels. The parent parcel, usually the one with the most value, will now reflect the total property 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 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.