In today’s economic climate the old adage of a penny saved is a penny earned takes on even more significance. Real estate taxes can be one of the largest operating expenses when owning and operating commercial real estate. This expense could also have a significant impact on the value of your property.
The county auditor is responsible for assigning a market value for all of the individual properties in the county. Every six years the county auditor appraises all of the properties to determine their market value. Every three years, the county auditor does an update known as the Triennial update.
The 88 Ohio counties have sent out notices of assessments which could result in changes to your or your clients’ tax bills for the next few years. Review your assessment carefully to see if your taxes are consistent with market valuations. The county mass appraisal process often uses comparable sales of properties that occurred up to 3 years prior to the effective date of value. This means that they may be using historical sales to value your property, which may or may not be relevant.
The Dayton office market continued to show signs of recovery in 2014, based on results from Miller-Valentine GEM’s 4th Quarter Office survey. The vacancy rate for the overall Dayton office market remained stable at 26.03%, with notable positive absorption trends in both the East Dayton and North markets.
After several years of struggle from the shake out of defense cuts and consolidations in the defense industry, the East Dayton market showed the greatest activity with over 150,000 sqft. absorbed in 2014. The most notable deal in the East market during 2014, was the Berry Company relocating to the Miami Valley Research Park from its former Moraine headquarters.
The North market, recently the weakest suburban market, now represents the area’s strongest office market, with a current vacancy rate of 20.99%, a nearly 10% decrease from 2010. The CBD market remains the area’s softest market, with a vacancy rate at 32.74%, which was relatively unchanged from the previous year.
According to our 2014 Retail Market Survey, the Dayton Regional Retail Market remained relatively stable during 2014 as market gains and expansions were countered by greater vacancies in certain submarkets. The overall market showed signs of continued recovery, but at a slower pace.
The vacancy rate for the Dayton Regional Market rose to 15.35% during 2014, up from 13.85% in 2013. This 1.5% increase was mainly due to weakness in the Xenia and Lebanon-Middletown markets. Within the Dayton regional market a negative absorption of (209,441) square feet of space occurred during the 2014 survey period. Of the outlying regional submarkets, Upper Valley and Franklin-Springboro were the most active in 2014, with stabile occupancy levels reflected in these submarkets. Continue reading
According to our 2014 Industrial Market Survey, throughout this year the Dayton industrial market has shown signs of moving from the recovery phase into the beginning stages of expansion in the real estate market cycle. The overall vacancy rate for the industrial market in the Dayton region dropped to 19.39%, which is down from the 2013 figure of 20.68%. Within the Dayton regional market a positive absorption of 389,607 square feet of space occurred during the 2014 survey period. The Dayton Area market experienced a positive absorption of 90,829 square feet during the same period. Continue reading
Real Estate Company Gem Real Estate Advisory Group announces today its new Location Analytics platform designed to support commercial real estate development. This new platform is built on Esri’s Business Analyst Desktop Software, cloud web-map services from ArcGIS Online, and Beitz & Daigh Geographics’ Opportunity Surface™ 2.0 Location Analytics model. Gem Real Estate now has the enhanced ability to locate and prioritize sites for development based on their clients’ location and demographic requirements by aggregating multiple demographic variables and data points to form a single opportunity surface which will help accelerate the site selection process. Continue reading
According to our 2014 Apartment Market Survey, the Dayton apartment market remained in the expanding phase of the real estate market cycle throughout 2013 and into 2014. The overall vacancy rate for the apartment market dropped to 6.56% for the Dayton Area and to 6.35% for the region. This year’s vacancy rate is down from last year’s figures of 8.65% and 8.10%, respectively.
Positive absorption trends were observed in both the Dayton Area and Dayton Regional markets, while 636 units were absorbed in the Dayton Area and 674 units in the Dayton Regional markets. Continue reading
According to our 2013 Office Market Survey, the Dayton office market remained in the recovery phase of the real estate market cycle throughout 2013. The overall vacancy rate for the office market dropped to 25.66%. Positive absorption trends were observed in both the South Dayton and CBD markets, while the North Dayton market remained unchanged in 2013.
The greatest change for the 2013 survey resulted in the East Dayton market, which continued to struggle from the shake out of defense cuts and consolidations in the defense industry that has been trending since 2010. Our researchers surveyed a total of 76 office buildings, totaling 3,665,821 square feet of space, in the East market. Of this space, 1,039,343 square feet, or 28.35%, was reported to be vacant. Continue reading
There is a Danish Proverb which states “Money saved is as good as money gained.” This can be especially true when reviewing the operating expenses of real estate. An area which can often be the largest line item expense for a property is its real estate taxes.
Real Estate Taxes are based upon the market value placed on the land and buildings by the local taxing authority, the County Auditor, and the taxing district’s millage rate. For Ohio, Millage rates are determined by the district voters and applied to the assessed value of the real estate (35% x Market Value). The county auditor re-appraises properties within the county every six years and performs an update, called the Triennial Update, every three years. Depending on where your county is in its cycle, the value determined for your property could be in effect for three years.
If you believe the value of your property is less than the market value as determined by the County Auditor, it is not too late to challenge your tax year 2013 assessment (payable in 2014). Continue reading
Throughout 2013 the Retail market has continued to be Dayton’s strongest sector, averaging around 12.5% vacancy. The most active areas in the region are in Dayton’s South market near the Dayton Mall and around the Austin Landing interchange. The North and West Dayton markets continue to be in recession as absorption and vacancy rates lag behind the other markets. The Dayton East market, which has historically led the market in activity, continues to show strength with a sub 10% market vacancy. Infill developments, driven by consumers desiring options closer to employment and residential hubs, continue to play a prominent role in both the South and East markets. Continue reading
During the first quarter of 2013 the Dayton commercial and industrial real estate markets tracked closely with the national political climate with modest activity in all market sectors. In the third and fourth quarters of 2012 activity from buyers and tenants began to Continue reading