Commercial Property Appreciation in Downtown Harrisonburg


Commercial Property Appreciation in Downtown Harrisonburg
By Scott Rogers • February 29, 2008
I was recently asked about the rate at which commercial properties are appreciating (growing in value) in downtown Harrisonburg. Getting to an answer took quite a bit of data collection and analysis, but here's what I have compiled . . . Methodology Properties meeting the criteria below were considered in this study, which resulted in a data set of 145 properties: B-1 zoning (downtown central business district) Current commercial use categorization Property improvements of $50,000 or greater Point-to-point Sales Analysis A point-to-point sales analysis was completed of all properties for which two historical sales prices and dates were available, where the sale dates were at least two years apart. This resulted in a data set of 8 properties: Appreciation per year ranged from 7% to 26%. Average appreciation per year was 16%. Five-Year Comparison of Assessed Values The 2003 assessed value and 2008 assessed value were compared for each of the 145 properties. Appreciation per year ranged from 1% to 56%. Average appreciation per year was 12%. NOTE: The 12% per year increase in assessed values includes a number of properties purchased and rehabbed by investors (which, in some cases, caused major increases in assessed values). So, added value by investors is part of the 12% (not just perceived market appreciation by the assessor). Receive Updates by Email Recent Articles: Contract Activity In 2020 Is Somewhat Useless For Understanding 2021 Market Activity This Housing Inventory Crisis Is Likely YEARS In The Making I Just Sold My House. Should I Buy A House This Year Or Wait Until Next Year? Now Can Be A Great Time To Sell An Investment Property Are Inventory Levels Slowly Starting To Increase? I Should Definitely Sell My House Right Now To Take Advantage Of This Market Why In The World Are You Buying A House Without A Home Inspection?? I Will Offer You ONE MILLION DOLLARS For Your House... Oh, Contingent On An Appraisal... If Your Property Needs Improving, Do Not Price It As If It Does Not Over 4,000 New Homes Are Under Construction Or Being Planned In Harrisonburg, Rockingham County
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Aug 04, 2021 (unless otherwise noted).
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