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Property values went up by 6.1% last year in New York City, boosted largely by single-family home prices, according to newly released assessments from the city’s Department of Finance.
The department’s tentative assessment roll, released Tuesday, set a $1.48T market value for the city’s residential and commercial properties and utilities for the fiscal year beginning in July. Citywide assessed values, used to evaluate properties for tax purposes, are expected to rise 4.4% this year to $286.8B as a result.
Real estate taxes are the single biggest source of tax revenue for NYC, providing about a third of the funds for the city’s $106.4B budget.
The rise in assessed values largely comes from market values of single-family homes, which grew by 8.3% this year to $765B. Values in Staten Island increased the most, going up by 12.1%.
The values of rental apartment buildings, condos and co-ops, meanwhile, experienced a less pronounced rise, increasing by 1% to $351B. In Manhattan, rental buildings' market value dropped by 1.5%.
The office sector’s values rose by 7.1% last year over 2021, but the city’s Department of Finance warned that continued occupancy issues threaten retail and hotel asset values, which grew by 5.4% and 9.7%, respectively.
“The decline in office occupancy continues to impact retail stores and hotels in the city contributing to the sector’s slow recovery,” Department of Finance Commissioner Preston Niblack said in a release.
The market value for commercial property is still below pre-pandemic levels, despite values growing by 7.4% to $317.2B. But vacancy rates climbed to 22% in November as leasing activity stayed low and new office space came online, with city officials projecting the lowest asking rents in a decade for offices in 2023 as vacancies continue to rise.
But some of the biggest names in Manhattan’s CRE sector will still see significant hikes to their tax bills.
Related’s 8.8M SF Hudson Yards development, the most valuable property in the city, saw its assessed value rise to $4.39B from $3.97B, coinciding with an estimated tax increase of 103% for fiscal year 2023, according to the Finance Department's tentative figures.
Brookfield's Manhattan West was assessed at $2B, 9% higher than in 2021. The 1-6 World Trade Center property was assessed at $3.49B, a 4.2% bump from last year, while Silverstein's 7 World Trade Center got a 13% jump in market value to $572M.
Most of the city's largest office buildings saw their values rise: The General Motors Building's market value rose 17% to $1.94B, Bank of America Tower's value rose 7.2% to $1.5B, and the MetLife Building's value rose 3.3% to $1.4B. The largest value loss in an office building was at the Durst Organization's 4 Times Square, which saw its market value drop 4.5% to $679.9M.
Hotel values rose markedly after a depressed 2021. The Waldorf Astoria, which has been closed for years for a delayed condo conversion, was given a 14.9% market value boost from $362.8M to $416.8M.
The most valuable apartment property, Stuyvesant Town, was assessed at $1.46B, a 6.5% drop from 2021. Peter Cooper Village nearby, also owned by Blackstone, saw its assessed value rise nearly 6.5% to $461.5M.
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