Municipalities and school systems that depend on property taxes to fund their budgets may face shortfalls due to the plunge in office values—especially in cities that do annual property assessments—as more and more building owners appeal their assessments.
In jurisdictions that reassess property values annually, owner appeals of tax assessments are up by as much as 40% compared to pre-pandemic levels, Bryan Frey, a managing director in CBRE's valuation consulting business, told the Wall Street Journal this week.
Carr Properties, which owns a large portfolio of office buildings in Washington DC, told the Journal it would be appealing this year's assessment from DC, which cut large office building assessed values by 11% in 2021, but raised them 3.6% in 2022.
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