The pandemic pushed down values for several categories of commercial property, but it didn’t completely derail the increases that homeowners have experienced for the past decade, according to a report Monday from assessors in metro Denver and Boulder.
County assessors determine property values every two years in Colorado. Those values, in turn, plug into a formula that determines what owners pay in taxes. The current valuation statements, which will be mailed out to property owners by May 1, are based on a reappraisal period stretching from Jan. 1, 2019, to June 30, 2020.
Boulder County led the metro area with an 11% median gain in residential property values, followed by Jefferson County at 10%, Adams and Douglas counties at 8%, Arapahoe, Broomfield and Denver counties at 7% and Elbert County at 6%.
The pace of residential gains, measured over two years, did slow significantly from the prior two valuation cycles. Statewide, median residential property values were up 17.2% the last time notices went out in April and May 2019, and Adams County led the region with a median increase of 24%.
In the 2017 valuation cycle, median residential property rose 40% in Adams County, 26% in Arapahoe and Denver counties and 17.2% in Douglas County.
Valuation for apartments and other multi-family buildings generally held up during the pandemic, although some downtown buildings suffered declines as residents fled to less crowded living quarters. Arapahoe and Broomfield counties experienced 19% gains in the median value of apartments, followed by Jefferson and Boulder counties at 15%. Apartment values rose 11% in Adams County and 9% in Denver.
In a vote of confidence in future demand, vacant land experienced big increases in value, according to the report. Land values rose 21% in Douglas County, 20% in Boulder, 19% in Arapahoe, 15% in Adams and 10% in Denver and Broomfield counties.
Widespread business closures and travel restrictions because of the pandemic put a dent in sales and contributed in some cases to missed rent payments and rising vacancies. Those led assessors to lower valuations for hotels, restaurants and bars, entertainment venues, and some types of retail.
Office property values were relatively flat, despite the whole work-at-home trend, although some downtown office buildings did take a haircut. Warehouses held up the best, given the strong demand for distribution space to accommodate more online retail. Values there rose from 10% to 25%.
Property owners who disagree with the valuation notices they receive can pursue an appeal. Those can be done online or in person. Adams, Broomfield, Denver, Douglas and Elbert counties will offer both in-person and virtual meetings for appeals, while Arapahoe, Boulder and Jefferson counties offer only virtual meetings by appointment.
Source: https://www.denverpost.com/
