Alexandria's Overall Commercial Property Value Down In 2021

ALEXANDRIA, VA — Taxable property increased by 2.7 percent since last January, according to the City of Alexandria's 2021 property assessments. However, commercial properties had an overall decline while residential assessments increased.

The tax base increases include $712.4 million in appreciation of existing properties and $227.01 million in new development or improvements. The city is mailing assessments for 46,262 parcels of commercial and residential property. Assessments are based on 100 percent of fair market values as of Jan. 1, 2021.

The commercial tax base declined by 1.96 percent, a change from the 2.8 percent increase in 2020. The value of commercial properties dropped by $342.5 million since last year's assessments. In a news release, the city government cited significant declines of 29.64 percent in the hospitality sector and 10.72 percent in the retail market sector.

The decline would have been greater if not for an increase for multifamily rentals. This sector alone grew by $110.1 million, or 3.53 percent. Overall, commercial properties represent 40.6 percent of the city's tax base.

The residential tax base overall increased by 6.02 percent overall, representing the largest increase in the residential category since 2006. The average assessment for all residential property types, including single-family homes, townhouses and condominiums is $615,858, representing a 5.7 increase from last year. For single-family homes alone, the average assessment is $839,961, a 5 percent increase. The average condominium value is $375,070, an increase of 7.7 percent.

While the city's overall property value increased, individual property's value may have increased, decreased or be unchanged.

The 2021 assessments will factor into real estate tax bills due on June 15 and Nov. 15. The real estate tax rate adopted by City council combined with assessments will determine the tax bill for property owners. City Manager Mark Jinks is expected to propose a real estate tax rate on Feb. 16 as part of the proposed fiscal year 2022 budget. City Council will vote on the real estate tax rate on May 5.

For property owners who feel their property is not assessed at fair market value or that the assessment is not equitable with surrounding properties, a request for review can be filed. The deadline to request a review is March 15.

Property assessments and information on the review and appeal process are available at www.alexandriava.gov/RealEstate.