Features

A growing number of commercial properties incorporate efficient attributes that exceed basic code requirements. While conserving resources, these sustainable building strategies can also enhance the owner’s bottom line by reducing operating costs. As investors consider developing or buying green properties in certain markets, though, they should consider a less obvious source of savings — their property tax bills. No single set of attributes defines a green building. Instead, sustainable structures lie on a spectrum. At one end are otherwise-conventional buildings with modest upgrades, ranging to a high end of properties employing comprehensive design and operational strategies that approach zero net consumption of energy or water. The features most commonly associated with green building tend to be efficient heating and cooling equipment, better insulation, rainwater catchment and on-site power generation methods such as solar, wind or geothermal. While rooftop solar panels garner attention, other design attributes including passive solar collection, drought-tolerant landscaping, and building-control systems can be equally effective at achieving sustainability objectives. Ultimately, each attribute adds costs to the construction or operation of a property, while not necessarily generating the same incremental gain in value. Seeking competitive edge Green design and operations have become standard for Class A properties in …

WASHINGTON, D.C. — U.S. employers have added to their payrolls for 90 straight months, extending the longest continuous jobs expansion on record, according to The Wall Street Journal. Still, the latest employment report from the Bureau of Labor Statistics (BLS) fell far short of expectations. Total nonfarm payroll employment rose by 103,000 in March, while unemployment held steady at 4.1 percent, the BLS reported last Friday, April 6. Wall Street economists had expected an increase of about 185,000 jobs in March, reports Bloomberg. REBusinessOnline reached out to three real estate researchers for their reaction to the latest jobs report, plus insights as to when this positive streak might end, the near-term outlook for interest rates, and the impact of tariffs on the employment market. Q&A participants included Ryan Severino, chief economist for JLL who works out of the firm’s New York City office; Ken McCarthy, principal economist and applied research lead for the U.S. based in Cushman & Wakefield’s New York City office; and Steve Hovland, director of research for Irvine, Calif.-based HomeUnion Inc. What follows are their edited responses. REBusinessOnline: Why do you think the total nonfarm payroll employment for March fell far short of expectations, and what should we …

It’s critical for owners to identify both economic and functional obsolescence in order to fight unfair property tax assessments. New technologies, shifting markets and aging buildings can drive economic obsolescence across entire industries. Equally important for the taxpayer, these factors also affect individual property values from a functionality perspective. Understanding both economic and functional obsolescence is essential to properly evaluate tax assessments for accuracy. Determining functional obsolescence requires an analysis of the property’s layout and technologies in use. This exercise attempts to quantify any adjustment in value that amplifies or outpaces downward trends occurring in the market, or accelerates depreciation beyond a straight-line basis. This may include external trends having a unique negative effect on the property’s functionality. Likewise, economic obsolescence can affect a property’s value. Such an analysis involves external factors not necessarily specific to the property that may compromise its value on the open market. Declining trends in markets within an industry can signify reasons for impaired values both nationally and regionally. Moreover, international competition may underscore weaknesses within an industry that explain a reduction in a particular property’s value. In ascertaining the decline in a property’s value due to economic obsolescence, the analysis must attempt to quantify …