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.
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
- 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.
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.