Partners Michelle DeLappe and Andrew Rapp are joined by Allen Safer, Executive Director, Integrity Realty Resources – Seattle, to present "The Impending Office Armageddon: Property Tax Appeals & Other Appraisal Contexts" at the 17th Annual Fall Real Estate Conference of the Seattle Chapter of the Appraisal Institute.

Office properties present a special challenge for valuation in the current economic environment. Remote work, high interest rates, and other factors are leading some to conclude that this property sector is in crisis. One valuation context where understanding these issues is crucial is for market value appraisals for property tax appeals where the property is suffering from significant vacancy. Based on presenters’ experiences in property tax appeals in Washington State, it is clear that the valuation should be reduced for under-market occupancy, even where a tenant continues to pay rent but has physically vacated. This presentation will compare the property tax context with other valuation contexts such as financing, market acquisitions, and other leased-fee appraisals, as well different formulas for fair market rent determinations that apply in the current economic situation.

Learning Objectives:

At the end of this session, learners should be able to:

• Analyze the effect of factors in the office market on the market values of office properties.
• Explain how property tax valuations should account for above-market vacancy and how it differs from other types of valuations.