Real Property Assessment Information
For CY13, real property assessments in the City of Alexandria are performing similarly to those in other close-in Northern Virginia markets. Overall, residential values have posted an increase of 3.57%, while commercial property values increased by 3.28%. The total 2013 locally assessed real property tax base increased 3.45% from 2012. This marks the third year in a row that assessed values have increased.
The Residential Market
Improving housing market conditions in Alexandria are due to relatively low unemployment, the significant number of high paying jobs, and its prime location inside the beltway with four Metro stations. This optimistic outlook is tempered by possible future federal austerity measures which could hinder further recovery of the local housing market.
In 2013, the average value of residential property, including single-family and condominium is $470,664, an increase of 2.96% from the previous year.
The average single-family house is assessed at $651,468, an increase of 2.97%.
The average residential condominium is assessed at $273,664, an increase of 2.22%.
For 2013, 70.04% of residential properties increased in value, 12.06% declined, and 17.9% are unchanged.
The Commercial Market
Commercial assessment increases in 2013 were led by solid demand for multi-family rental. Driven primarily by rent growth that exceeded operating costs, multi-family/apartment properties saw an overall year-over-year increase of 8.51%. This was followed by general commercial properties which saw a modest overall increase of 2.16%. The City’s office market continues to face challenges relative to absorption and rent growth. Increases in the overall vacancy rate, tenant concessions, and lower effective rental rates were essentially offset by a reduction in capitalization rates (the ratio of net operating income to market value) resulting in a nominal reduction of 0.15%.