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Owners of big box retail buildings can take lessons from Michigan on the proper way to value these large, free-standing stores for property tax purposes. The state’s well-developed tax law offers a clear model that is applicable in any state that bases its property tax valuation assessments on the fee simple, value-in-exchange standard. Many states, including Michigan, base real estate taxation on the market value of a property’s fee simple interest using value-in-exchange principles. In other words, a property’s taxable value is its market value, and market value is commonly considered the property’s probable selling price in a cash-equivalent, arms-length transaction involving willing, knowledgeable parties, neither of whom is under duress. In recent years, the Michigan Tax Tribunal has decided with remarkable consistency a dozen cases involving big box stores. In 2014, the Michigan Court of Appeals affirmed two of these Tax Tribunal decisions, recognizing that the Tribunal’s key rulings in this area rested on established law. Probably the most important concept affirmed in these Michigan decisions is that assessors must value big box properties based on their value-in-exchange and not their value- in-use. Assessors and appraisers hired by local Michigan governments repeatedly – and improperly – reached value conclusions …

WASHINGTON, D.C. — Making it seven consecutive months of positive momentum, the Architecture Billings Index (ABI) posted a score of 50.9, down from 53.7 in October. The score reflects an increase in design activity, with any score above 50 indicating an increase in billings. A barometer of future non-residential construction activity, the ABI reflects the roughly nine- to 12-month lead time between architecture billings and construction spending. The index is produced by The American Institute of Architects (AIA) Economics & Market Research Group. The score is tabulated based on a monthly survey sent to a panel of AIA member-owned architecture firms. “Demand for design services has slowed somewhat from the torrid pace of the summer, but all project sectors are seeing at least modest growth,” says Kermit Baker, AIA’s chief economist. “Architecture firms are expecting solid mid-single digit gains in revenue for 2014, but heading into 2015, they are concerned with finding quality contractors for projects, coping with volatile construction materials costs and with finding qualified architecture staff for their firms.” The South region posted the highest three-month average ABI score (57.9) nationally, followed by the West (52.7), Midwest (49.8) and Northeast (46.7). Among property types, multifamily posted the highest …

LOS ANGELES — A recent CBRE report found that online sales during the course of the Thanksgiving weekend grew 17 percent over 2013, with an average order size of $124. Similarly, on Cyber Monday, sales grew 8.5 percent year-over-year. (Cyber Monday fell on Dec. 1 this year.) “Cyber Monday is no longer a one-day event,” says Spencer Levy, head of research for CBRE Americas. “Consumers are now spreading their holiday shopping over ‘Cyber Week’, taking advantage of online sales that began before Black Friday. Continued strength in online shopping is a trend which bodes well for the U.S. industrial real estate market, as e-commerce companies and omnichannel retailers will need more space to warehouse and process online shipments.” During the five-day “Cyber Week” period, online sales were up 12.6 percent nationwide, indicating that consumers are spreading their shopping activity over the course of the holiday season rather than just focusing on a single day. Traditional brick-and-mortar retailers seemed to reap the benefits of adopting omnichannel strategies, the report points out. On Cyber Monday, department stores recorded 17.9 percent year-over-year growth in online sales nationwide, while the biggest retailer in the U.S., Walmart, reported its best Cyber Monday ever. In response …