Annual Assessment Appeals

New York City commercial landlords are filing annual assessment appeals amid concerns that property tax bills do not align with market realities. Despite declining market values and increased distress, assessments for office buildings rose by 3.5% this year, driven by premium spaces. The discrepancy between market valuations and city assessments is widening, attributed to a lack of data points and pre-pandemic lease agreements not yet reflected in assessments. Tax certiorari lawyers anticipate more cases going to the Law Department and possibly court as landlords, grappling with reduced office demand, seek fair assessments amid the ongoing impact of the pandemic and the hybrid work model.