OAKLAND — Real estate prices in Alameda County are rising at their slowest pace in three years, and attempts by office constructing owners to appeal assessments could further damage values.
Property values in Alameda County totaled $435.85 billion in fiscal yr 2024-2025, up 5.1% from the $414.86 billion in assessed values for fiscal yr 2023-2024, based on the County Assessor's Office. The latest assessment list represents an official snapshot of values as of Jan. 1, 2024.
“The real estate market has been particularly affected this year … by rising interest rates,” said Phong La, Alameda County tax assessor, in a prepared press release announcing the brand new overall tax list.
Although Alameda County property values increased in essentially the most recent sample from the January 2024 tax rolls, the pace of increase was much slower than lately.
The January 2023 assessment sample increased 7.3% year-over-year. The January 2022 sample represented a 7.8% increase year-over-year. The January 2021 benchmark was 4.6% higher than the previous yr.
The sluggish increase measured from January 2021 was to be expected given the economic shocks brought on by the coronavirus.
The economic unintended effects of the coronavirus included widespread business closures, leading to countless office buildings, industrial properties, retail stores and restaurants closing their doors.
A slow return to the office market and job cuts within the technology industry have led to a decline in corporate demand for office space. More office space is being offered for sublease and office leasing activity has declined.
This in turn has led to falling office rents and a discount in the worth of office buildings.
More and more office buildings have fallen into arrears. The waves of loan defaults and foreclosures have also weakened the worth of economic real estate.
Real estate values in each California county provide greater than only a snapshot of a region's economic vitality and the condition of a city's industrial and residential properties.
Property taxes, that are derived from the assessed value of a property, also represent a vital income for a variety of services provided by quite a few county, city and regional authorities and administrations.
“The tax list provides funds for roads, public safety (including police and fire), public schools, medical safety services (such as hospitals and clinics), cities and local special districts, as well as water, parks, health care and utilities,” the Alameda County Tax Office reported this week.
The property tax also plays a significant role in financing public education, the expert explained.
It can be possible that the present total valuation amounts will decrease.
Alarmed by falling office, retail and hotel property values, an increasing number of industrial property owners are hoping to steer Alameda County authorities to lower their fees and property taxes.
“The number of property assessment appeals is increasing, particularly for office buildings, shopping centers and some residential properties,” the Alameda County Assessor's Office reported. “The outcome of these appeals can have a significant impact on local services.”
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