John Watling – Assessing the Commercial Office Sector in 2024

We cover:Introduction to Assessment Matters podcast 00:00John’s bio and big ideas 00:35John's experience in property valuation and property tax policyThe state of the office property sector and related challenges faced by assessment agenciesThe state of the office industry 4:57The effect of the pandemic on offices as an asset classWFH dynamics and high vacancy rates — supply outstripping demandBifurcation in the market depending on building qualityOccupancy levels within offices — only 40-50% even for in-officeLagging factors: pre-leased offices in delayed construction finishesShort term macroeconomic concerns 16:32Outstanding loans vs lowered valuations and higher cap ratesIncreased hesitance in bank lendingChallenges for assessors 19:36Due diligence required for financial information and sales investigationsImportance of local knowledge: owners, tenants, brokers, third-party reportsNot being swayed by distressed and/or bankruptcy salesLet the actual data—not speculation—drive resultsRelevance of office portfolios to municipal tax revenuesHow to contact John 23:28Email: jwatling@ipti.org