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City’s tax assessment process treats multifamily buildings unevenly on a land value basis: land under newer assets around 10% of value, 30% for older assets

• Apartment buildings within the four core Center City zip codes (19102, 19103, 19106, and 19107) demonstrate the inconsistent methodologies that landlords are experiencing as the city continues to reassess properties in an effort to move toward actual value. The buildings surveyed saw underlying land valued as high as 56 percent of total property value, but the majority show land values solving for either a 10 or 30 percent valuation for land relative to total market value.

• The readily observable pattern is that new construction and major renovation projects mostly seem to solve for a 10 percent land value to total value formula, while un-renovated and older product mostly clusters at 30 percent.  While there is no national consensus around the value of urban land relative to structures, it is fair to expect that within a common geography and asset class, real estate professionals should expect consistent land valuations. 

Source: JLL Research, Philadelphia Office of Property Assessment

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