OAKLAND — Alameda County real estate values are growing at their most feeble pace in three years, and efforts by owners of office buildings to appeal their assessments might further undermine values.
Property values in Alameda County totaled $435.85 billion for the 2024-2025 fiscal year. That’s up 5.1% from the $414.86 billion in assessed values for the 2023-2024 fiscal year, the County Assessor’s Office reported. The latest assessment roll represents an official snapshot of values as of Jan. 1, 2024.
“The real estate market this year…was particularly impacted by rising interest rates,” Alameda County Assessor Phong La said in a prepared release to announce the new overall tax roll.
Although property values in Alameda County rose in the most recent assessment roll snapshot of January 2024, the pace of the increase was greatly reduced compared with recent years.
The January 2023 assessment snapshot jumped 7.3% from the prior year. The January 2022 snapshot represented an increase of 7.8% from the year before. The January 2021 benchmark was up 4.6% from the prior year.
The sluggish increase measured as of January 2021 was expected in the wake of the economic afflictions that the coronavirus spawned.
Wide-ranging business shutdowns that emptied countless office buildings, commercial properties, retail sites and restaurants were among the economic side effects that rose from the coronavirus.
A faltering return to the office space and tech industry job cuts have coalesced to reduce the appetite by corporations for office space. More office spaces are being offered for sublease and office rental activity has faded.
That, in turn, has caused rents for office spaces to falter and the values of office buildings to erode.
A growing number of office buildings have toppled into default. The waves of loan delinquencies and foreclosures have also washed away and weakened commercial property values.
Real estate values in any California county do more than offer a snapshot of the economic vitality of a region and the health of an urban center’s commercial and residential properties.
The property taxes that arise from a parcel’s assessed value also supply a crucial flow of revenue for an array of services provided by numerous county, city and regional agencies and governments.
“The assessment roll provides funding for roads, public safety including police and fire services, public schools, safety net medical services such as hospitals and clinics, cities and local special districts, including water, parks, healthcare, and utilities,” the Alameda County Assessor’s Office reported this week.
Property taxes also play a huge roll in funding for public education, the assessor stated.
It’s also possible that the current assessment overall totals could become diminished.
Alarmed by fading office, retail and hotel values, a growing number of commercial property owners hope to coax Alameda County officials into reducing their assessments — and property taxes.
“Property assessment appeals are on the rise, particularly for commercial offices, shopping malls, and some apartment buildings,” the Alameda County Assessor’s Office reported. “The outcome of these appeals may have significant impacts on local services.”