Archive for the ‘Environment’ Category

The April 1 deadline for New Jersey property owners to challenge their property taxes saw about 116,000 appeals, the highest total in over 20 years. One main reason that the number of appeals were abnormally high this year is Hurricane Sandy, which left billions of dollars in property damage in its path. According to NJ.com, more than 81,000 of the appeals were settled out of court or succeeded, resulting in nearly $5 billion in reduced assessments in municipalities throughout the state.

While property owners may be happy with their lower values to this point, the fact remains that the income lost from lower property taxes must be made up somehow, likely in the form of higher tax rates in the future. In order to shoulder some of the burden, Legislation currently pending is urging a change in the system that would have county governments and school districts share in the appeal payouts because both of their funds come from property taxes.

To read the full article from NJ.com, click here.

New York-area real estate executives are expressing pessimism about the current state and future of the commercial real estate market in Manhattan. According to MarketWire, the majority of real estate executives say Hurricane Sandy has hurt commercial real estate property values in lower Manhattan, with some even expressing that values have been permanently lowered. As a result, many think that landlords in the area will be forced to lower rents and offer incentives in order to retain tenants.

There is a strong sentiment that the aftermath of the storm has damaged the commercial real estate market as bad as the properties themselves. What this means for the future of tenants and investors is yet to be determined, but at the moment, it is bad news for owners.

New York City council passed a bill to help homeowners whose properties were severely damaged by Hurricane Sandy. According to the Gotham Gazette, the bill extends the deadline for homeowners to pay their next property tax bill from January 1, 2013 to April 1, 2013, interest free. Only homes that have been determined to require major structural repairs by the Department of Buildings, or that must be demolished, are eligible for the extension.

At the moment, these benefits are not being passed on to commercial property owners. However, councilmen across the area are hoping for a more robust conversation regarding the issue. As it stands, many commercial owners across the area are receiving property tax bills of up to $20,000 for businesses that no longer exist as a result of the storm.

To read the full article from the Gotham Gazette, click here.

The New York City commercial real estate market will rebound from the affects of Hurricane Sandy just as it has after disasters in the past. According to SFGate, as bad as the storm was, many executives believe commercial real estate in the city will be back to normal in a years’ time. Still, several real estate companies admit they were ill-prepared for the multitude of Sandy and plan to be better prepared for such events in the future.

Unfortunately for some, several jobs have been lost during the whole process. On the brighter side, they will most likely be replaced by firms that will help “re-imagine the city” and hire architects, engineers, designers and construction workers. The government is going to have to step up in order to come to some sort of solution to help with the damage now, and prevent it as much as possible in the future. Everything that is being re-built should account for the increasing frequency of severe storms.

To read the full article from SFGate, click here.