[vc_row][vc_column][vc_single_image image=”886″ img_size=”full” alignment=”center”][vc_raw_html]JTNDZGl2JTIwaWQlM0QlMjJidXp6c3Byb3V0LXBsYXllci05OTg2ODQ4JTIyJTNFJTNDJTJGZGl2JTNFJTNDc2NyaXB0JTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuYnV6enNwcm91dC5jb20lMkYxNzQwMjc5JTJGOTk4Njg0OC0yMDIxLWNyZS1yZWNhcC0yMDIyLWNyZS1vdXRsb29rLmpzJTNGY29udGFpbmVyX2lkJTNEYnV6enNwcm91dC1wbGF5ZXItOTk4Njg0OCUyNnBsYXllciUzRHNtYWxsJTIyJTIwdHlwZSUzRCUyMnRleHQlMkZqYXZhc2NyaXB0JTIyJTIwY2hhcnNldCUzRCUyMnV0Zi04JTIyJTNFJTNDJTJGc2NyaXB0JTNF[/vc_raw_html][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]2021 was a year that most people would like to forget. However, the CRE market continued to boom in the shadows of COVID. The market, overall, saw epic numbers. However, assessors for the most part kept values flat, except for few asset classes, such as, retail and hospitality. The net effect was a mild reduction in property taxes by the end of the property tax appeal season.
Heading into 2022, CRE will most likely ride the coattails of what happened in 2021. Property fundamental values are up and improving. But after an “off” year in assessment increases, 2022 could be the year to catch-up in property tax increases in some property groups, while hard-hit assets classes will see continued reductions in assessments.
Monetary policy will play large role in 2022. This will continue to buoy asset values in a market that is also driven by intense demand in the face of inflation. It is safe to assume the government will begin to taper interest rates. Although there is not a crystal ball to forecast what is around the corner, it is also a safe bet that we have a couple of more years to firmly understand how this will play out.
Contact Info
To learn more about how property tax issues can affect your investing strategies, please reach out to Tim Feagans directly at tim.feagans@retcgroup.com.[/vc_column_text][/vc_column][/vc_row]
