Commercial Property Values Impacted by Higher Interest Rates
Over the last few years, the Atlanta commercial real estate market has seen a rapid rise in valuations. The assessors have been tasked with "getting the values up". Even though the commercial market has been relatively flat in most sectors, assessments continue to rise. The hospitality industry did see sales prices increase from $137,000 a unit to $157,000 a unit. That is a 14.6% increase. The assessors will take notice of these sales. The retail market has increased slightly from $213 a square foot to $220 a square foot. Industrial properties are finally slowing down with vacancies increasing from 6.48% to 8.07% but we still saw a 6.7% increase in sale prices. Rest assured the assessors will use these sales to justify increasing assessments in 2025.
The office market in 2025 is cooling rapidly with sale prices dropping to $181 a square foot from $198 a square foot in 2024. Multi-Family properties have remained constant over the past year with cap rates remaining virtually unchanged. With the market fairly flat, it is time the assessors give back some of the inflated assessments seen over the last few years.
If you have been directly impacted by the current downturn, we can help you reduce your value.