Dear Clients and Friends
The coronavirus pandemic has caused unprecedented and unexpected disruptions to almost every facet of our lives and this will surely flow through to the relationships between tenants and landlords and ultimately the valuation of real estate.
We hope that all our valued owners and managers will do everything they can to keep tenants in place and hopefully everyone gets back to work safely and soon.
Your real estate taxes for 2020 will likely be unaffected by the disruptions and the governments’ mandated stay-at-home orders because the real estate values are based on January 1st of each year, and by all accounts real estate, especially industrial properties in South Florida, were at phenomenal levels at the end of the 2019.
However, the 2021 appraised values for tax assessment purposes will need to take into account the lost cash flows, and loss of subsequent value that may occur as a result of tenants being shutdown or landlords proactively cutting rents or providing other incentives.
We expect to have a very active tax appeal season for the next two years because of this, and we urge all returning and new clients to attempt to keep notes on how the shutdowns have affected their properties and any deals they are making with tenants. Most appeals will rely on factual numbers to analyze property but personal stories are helpful as well.
We hope everyone is able to stay safe and healthy.
Please email us if you have any questions or concerns.