Navigating Challenges in the New York City Office Real Estate Market: Assessments on the Rise, Values on the Decline

New York City office landlords are facing challenges as commercial property assessments rise while market values plummet. Even in prime locations, the office sector is struggling as companies reduce their physical footprints. There exists a growing disparity between market valuations and city assessments because of limited data points and insufficient sales. Most landlords or tenants appeal assessments every year, but with a high number of appeals and uncertainty about the market, the situation is becoming even more challenging. The outcomes are unpredictable and could reshape the commercial property tax scenario in the city in the coming years.

Ryan Principal Steve Thompson believes that there is a growing discrepancy between the market values of properties and the valuations used by the city, attributing this to stale income data and too few sales.