Pandemic-Driven Devalued Retail Real Estate Owners Should Seek Property Tax Reductions
Retail real estate has been one of the hardest hit markets by the COVID-19 pandemic. State shutdown orders and health guidelines, a shift in retailers’ needs, and tenant bankruptcies have created the perfect storm for declined retail space demand. Landlords have also had to endure government-mandated rent deferrals and holidays geared at assisting tenants. Even non-paying tenants have gained significant bargaining power over rents. Retail rent collections were reported at 20% to 40% in the Summer of 2020, and U.S. mall reappraisals in 2020 showed an average 60% drop in value from several years ago. The bottom line: retail real estate values have declined...
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RSK: Yes they should seek reductions but do not bet on getting much.

Ken Notes: As a former mayor I am torn between two loves(property tax and commercial development). I am really a fan of development agreements with guaranteed values and tax incentives -- win win...



- - Volume: 9 - WEEK: 21 Date: 5/18/2021 7:42:57 AM -