Following twoyears of double digit growth, Arlington’s commercial property values have fallen.
Commercial property values decreased by 0.1 percent in Calendar Year (CY) 2012, coming in at $30.4 billion. Although multi-family rental properties fall into that category and increased by almost 1 percent, the rest of the commercial property types (office, retail, hotel) declined by 0.5 percent. Commercial properties still account for 49 percent of the county’s tax base.
A county press release suggests the drop in commercial property values is due to impacts from the Base Realignment and Closure (BRAC) in Crystal City and concerns about federal budget issues. The budget concerns are expected to have an impact for the next few years. While state and federal grant funding remains uncertain, real estate tax revenues represent approximately 56 percent of the county’s total revenues.
“These assessments reflect the impact that BRAC, and the slow economic recovery, continues to have on Arlington,” said Arlington County Manager Barbara Donnellan in a statement. “While our balance of commercial and residential development continues to keep Arlington’s economic outlook fundamentally sound, we are not immune from the larger economic forces that continue to buffet the nation. As we projected late last year, there will be about a $50 million gap between the County’s revenues and expenses, and both County government and Schools will need to make some tough choices to close that gap.”
Overall, Arlington’s 2013 real estate assessments remained unchanged. The average assessment for existing single-family properties, including condominiums, townhouses and detached homes, increased by about 1 percent, to $524,700.
Real estate assessments will be mailed to all Arlington property owners starting today, and will be available online after 5:00 p.m. Of all residential property owners, 47 percent will see no change in their assessment, 22 percent will see declines of varying amounts and 31 will see increases of varying amounts.