In this episode, we're joined by John Watling, Director at the International Property Tax Institute. We talk about the state of the office industry, related macroeconomic concerns, and relevant challenges for property assessors.
We cover:
Introduction to Assessment Matters podcast 00:00
John’s bio and big ideas 00:35
John's experience in property valuation and property tax policy
The state of the office property sector and related challenges faced by assessment agencies
The state of the office industry 4:57
The effect of the pandemic on offices as an asset class
WFH dynamics and high vacancy rates — supply outstripping demand
Bifurcation in the market depending on building quality
Occupancy levels within offices — only 40-50% even for in-office
Lagging factors: pre-leased offices in delayed construction finishes
Short term macroeconomic concerns 16:32
Outstanding loans vs lowered valuations and higher cap rates
Increased hesitance in bank lending
Challenges for assessors 19:36
Due diligence required for financial information and sales investigations
Importance of local knowledge: owners, tenants, brokers, third-party reports
Not being swayed by distressed and/or bankruptcy sales
Let the actual data—not speculation—drive results
Relevance of office portfolios to municipal tax revenues
How to contact John 23:28
Email: jwatling@ipti.org
