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 5.32%, while commercial property values during the same period increased by 2.80%. The total 2020 locally assessed real property tax base increased 4.25% from the previous year. This marks the tenth year in a row that assessed values have increased.
The Residential Market
- Improving housing market conditions in Alexandria are due to 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 Metro stations currently in operation. A fifth station at National Landing is scheduled to open in 2022.
- As of January 1, 2020, the average equalized value of existing residential property, including single-family homes and condominiums, was $582,636 from $555,002 the previous year.
- The average single-family house for 2020 is assessed at $800,025 from $764,596 in 2019.
- The average 2020 residential condominium is assessed at $348,234, an increase from the 2019 average of $329,216.
- For 2020, approximately 91% of residential properties increased in value, 2% decreased, and 7% were unchanged.
The Commercial Market
Most commercial assessments increased. On a year-over-year basis, the commercial property tax base increased by 2.80%. 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 continues to face challenges due to a changing dynamic in work force characteristics that advocate mobility, 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 near Metro rail. Excluding multifamily rental and vacant land, the commercial property sector increased 1.03% on a year-over-year basis from 2019 to 2020.
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 2020, the OREA has also streamlined the billing process for some properties comprised of multiple parcels but functioning as one economic unit. The parent parcel, usually the one that has the most value, reflects the total property’s value (parent and ancillary parcels), eliminating the need for multiple bills and reducing the cost of postage to the City. 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.