The value of Alexandria’s residential tax base is outpacing its commercial tax base

The value of Alexandria’s total residential tax base has outpaced its commercial tax base, according to the city’s Office of Real Estate Assessments.

Over last year, the city’s overall real estate assessments increased 3.82%, or $1.7 billion, to reach a total of $43.88 billion, according to a report that the City Council will receive at its legislative meeting tomorrow (Tuesday) at City Hall (301 King Street).

The city’s residential tax base increased by 5.32%, or $1.24 billion, for a total of $24.6 billion. The average value of a single-family home value increased by nearly 4.6% to $940,375, and the average value of a condo in the city is $407,616, an increase of roughly 3.5% over last year. The city’s multi-family rental apartment market base also increased almost 5.4% this year, for a total of $9.89 billion.

Mayor Justin Wilson touted the assessments in a series of tweets. Some residents challenged this, saying the city’s assessments don’t line up with decreases in single-family home sale prices tracked on real estate websites.

To give you some more color on this year: the volume of single-family sales went way down. The volume of condo sales did not decrease as much.

So condos as a share of overall residential sales increased. Condos have lower values, which dragged down the median.

— Justin Wilson (@justindotnet) February 9, 2023

For every zip code in Alexandria — except 22305 (Arlandria) and 22312 (Lincolnia) — there was either a negative year-over-year change in sale price or no change, according to the website Redfin, which tracks median sale prices.

Wilson said Redfin’s estimates are wrong and the city’s full assessment data will be posted this coming Tuesday (Feb. 14) to examine.

Alexandria’s commercial tax base also increased just under 2%, for a total of $355.5 million.

While most commercial properties saw moderate increases, the value of office buildings in the city fell 10%. Additionally, a number of properties were and are being converted to residential use. The city’s overall equalized commercial office property tax base fell 1.8%, or nearly $66.2 million, from $3.65 billion in 2022 to $3.6 billion this year.

According to a city report:

There were seven sales of office buildings in 2022. Of those sales, one traditional commercial office building indicated intentions of conversion to residential development, [while] another plans to upgrade the current office building

• 1801 Beauregard Street, with 135,087 square feet, reportedly intends to convert its space into 95-to-105 rental units
• 515 King Street, with 82,800 square feet, intends to add additional amenities and develop coworking spaces
• Empty office buildings at 801 N. Fairfax Street, 625 Slaters Lane and 635 Slaters Lane are being converted into condominiums
• 4900 Seminary Road is being converted into 212 multifamily rental units
• Conversions have been proposed for 901 N. Pitt Street, at Transpotomac Plaza and at 1101 King Street

The overall value of Alexandria’s 22 hotels increased by 2.6%, or $12.8 million, from $497.5 million in 2022 to $510.3 million this year.

Assessment notices will be sent to property owners this Wednesday (Feb. 15), and residents have until March 15 to request a review of their assessment with the Office of Real Estate Assessments, followed by a June 1 deadline to file an appeal with the Board of Equalization.

As for trends, last year there was a nearly 27% decrease in the volume of single family home sales, and a 13% decrease in condo sales compared with 2021, according to the city.

The median sale price of residential properties in the City of Alexandria declined for a second year (in 2022) from $588,750 to $544,875. The median rose from $517,250 to $608,000 from 2019 to 2020. The decline is still attributable to a greater number of condominium properties (typically sold for less than single-family properties) in the sales sample than in years prior to 2020.

More 2023 Alexandria Assessment Data:

*26.71% decrease in the volume of SF property sales

*12.56% decrease in condo sales

*median sale price of residential properties declined for 2nd straight year

*$2.44B in new growth last 5 years pic.twitter.com/bZAKmEAt3F

— Justin Wilson (@justindotnet) February 9, 2023

More 2023 Alexandria Assessment Data:

The commercial tax base increased by $355M.

$322M of the increase was from new development, of which $302M was residential multi-family development (rental housing). pic.twitter.com/ShjZo9uI3x

— Justin Wilson (@justindotnet) February 9, 2023