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).