Rumors of tax increase has some worried.Industry members should voice their opposition to a possible $3 billion property tax increase that could mean owners paying 25% more in taxes, Real Estate Board of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of president Steven Spinola said at a recent lunch. "We believe these numbers will be devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. to the economy," Spinola said. "It may mean that we need your help." While officials have not passed a tax increase, it has been widely rumoured that the city could look to the commercial real estate industry to help make up the projected $6 billion budget shortfall, Spinola said. "We're probably going to have to deal with some sort of tax increase, but not the magnitude they are talking about," he said. "The only way we're going to hold the line on taxes is to speak up." Spinola said the City Council could meet as early as December and a tax increase could take effect as early as Jan. 1. Spinola addressed the audience at a Nov. 6 luncheon at the New York Hilton. He spoke prior to the event's planned event, which was a panel discussion entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: , "New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Real Estate Market: Back to the Future or a Paradigm Shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. ?" William McCahill, Jr., executive vice president and senior market manager of Fleet Bank, moderated the event. Panelists included David Creenbaum, president of Vomado Office; Benjamin Lambert, chairman and chief executive officer of Eastdil Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Company; and Robert Selsam, senior vice president and manager of the New York Offices of Boston Properties Boston Properties, Inc. (NYSE: BXP) is a self-managed real estate investment trust (REIT) based in Boston, Massachusetts. Its primary focus is "Class A" office space which it acquires, develops, and manages in the major markets of Boston, New York City, Washington, D.C. , Inc. The panel also addressed the tax increase issue. Greenbaum said building owners have already faced cost increases because of higher insurance premiums and increased security costs. An increase of the magnitude being discussed could mean owners paying $2 to $3 more a SF in taxes. "I think that's something that will be felt long and deep," he said. Selsam said that owners are already dealing with a tax increase because of the impact of the reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. that will be phased in over the next few years. "At the end of the day, it all goes to the landlords," he said. The panel also discussed the sales market, which has been strong due to low interest rates and a slumping stock market. McCahill said the panelists the impact the retail market has been having on the sale of office buildings. Greenbaum named two recent deals, 745 Fifth Ave., which sold for about $550 a SF and 717 Fifth Ave., which sold for $600 a SF. "The retail space is arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. worth $2,000 a SF," he said. "Retail is playing a bigger role in this city." Lambert said the key to understanding the market from a lender's perspective is to understand the objectives of companies like Boston Properties and Vornado when acquiring assets. "The key is to understand what is available on the debt side and what companies like Boston Properties and Vornado have in mind," Lambert said. |
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