As things continue to evolve around the spread of COVID-19 governments and businesses are preparing for the sharp decline in economic and social consequences. Ironstone Group REA is actively engaged in preparing our staff and clients for the consequences to come. We are committed to continuing our best efforts to communicate with you and the assessor’s office regarding your property tax assessments and personal property reporting. As we have consistently done for over four decades our work will be done in the best interests of our staff and clients.
IGREA is committed to business continuity for our clients. For consulting and valuation work it often involves travel and interaction with others within occupied buildings. Several of our clients have contacted us recently asking our opinion on how the situation will affect property values. If the loss of rental income becomes an issue and it appears it most likely will then NOI will decrease and CAP rates will rise. However, it will be some months before real data that we can utilize to support a decline in value is available.
Real estate values reflect economic conditions and a shutdown of retail establishments, all forms of travel restrictions, and other interruptions will have a severe impact on the valuation of all types of real estate. We see an imminent decline in the number of active buyers and tighter underwriting from lenders that will lead to a decline in valuations. We know from experiencing several severe downturns in the real estate industry over the past 45 years capital markets are the life-blood of the industry. Should the capital markets cease lending then it will certainly lead to further real estate valuation declines.
IGREA will continue to provide our clients with experienced property tax assessment valuations based on our proprietary information and over 45 years of continued operation. Please contact us should you have any questions regarding your property tax needs.