Commercial Revalue 2015 Assessment Roll AREA 36 King County, Department of Assessments Seattle, Wa. Lloyd Hara, Assessor Department of Assessments Accounting Division Lloyd Hara 500 Fourth Avenue, ADM-AS-0740 Seattle, WA 98104-2384 Assessor (206) 205-0444 FAX (206) 296-0106 Email: [email protected] http://www.kingcounty.gov/assessor/ Dear Property Owners: Property assessments for the 2015 assessment year are being completed by my staff throughout the year and change of value notices are being mailed as neighborhoods are completed. We value property at fee simple, reflecting property at its highest and best use and following the requirement of RCW 84.40.030 to appraise property at true and fair value. We have worked hard to implement your suggestions to place more information in an e-Environment to meet your needs for timely and accurate information. The following report summarizes the results of the 2015 assessment for this area. (See map within report). It is meant to provide you with helpful background information about the process used and basis for property assessments in your area. Fair and uniform assessments set the foundation for effective government and I am pleased that we are able to make continuous and ongoing improvements to serve you. Please feel welcome to call my staff if you have questions about the property assessment process and how it relates to your property. Sincerely, Lloyd Hara Assessor The information included on this West Duwamish – Area 36 map has been compiled by King County staff from a variety of sources and is subject to change without notice. King County makes no representation or warranties, express or implied, as to the accuracy, completeness, timeliness, or rights to the use of such information. King County 36-15 shall not be liable for any general, special, indirect, incidental, or consequential damages including, but not limited to, lost revenues or lost profits resulting from the use or 36-20 misuse of the information contained on this map. Any sale of this map or information on this map is prohibited except by written permission of 36-50 King County. 36-40 Assessments 7/16/15 36-80 36-70 36-90 36-10 Executive Summary Report Appraisal Date: 1/1/2015 - 2015 Assessment Year Area 36 Name: West Duwamish Physical Inspection: Neighborhood 36-40 Sales – Improved Summary: Number of Sales: 24 Range of Sales Dates: 02/15/2012– 12/15/2014 Sales – Ratio Study Summary: Sales - Improved Valuation Change Summary Improved Value Sale Price Ratio COD* 2014 Average Value $1,841,400 $2,226,500 82.70% 15.84% 2015 Average Value $2,103,100 $2,226,500 94.50% 9.25% Abs. Change $261,700 11.80% -6.59% % Change 14.21% 14.27% -41.60% *COD is a measure of uniformity, the lower the number the better the uniformity. A negative change of -6.59% and -41.60% implies an improvement in uniformity, and a COD of 9.25% is well within appropriate levels as determined by the IAAO (15% and lower). With Weighted Mean, COD, and PRD moving to 94.50%, 9.25%, and 1.02, respectively, all results are well within IAAO guidelines. Additionally, the sample size reflects the recommended minimum for this data set, increasing statistical significance of the ratio analysis results. Sales used in Analysis: All are improved sales verified as “Used” which did not have characteristic changes between the date of sale and the date of revaluation were included in the analysis. Population - Parcel Summary Data: Land Improvements Total 2014 Value $976,670,900 $542,259,400 $1,518,930,300 2015 Value $1,033,930,800 $559,950,000 $1,593,880,800 Percent Change 5.86% 3.26% 4.93% Number of Parcels in the Population: 1372 Parcels in the above table – 036 Vacant and Improved, and excludes specialty and government owned parcels. Page | 1 Conclusion and Recommendation: The total recommended value for the 2015 represents a 4.93% increase over the previous year. These recommended values improve Assessment Level, as indicated by the Ratio Study. Uniformity and equality are also improved over the previous year. In view of the market improvement within the West Duwamish Area, and with Assessment Level, Uniformity, and Equality falling within benchmark guidelines established by the IAAO, we recommend posting these values for the 2015 assessment year. Area 36 Responsible Appraisers: The following appraisers did the valuation for this region: Bruce Zelk – Commercial Appraiser II (Area 36) 2 | P a g e Analysis Process Effective Date of Appraisal: January 1, 2015 Date of Appraisal Report: April 27, 2015 The following appraiser did the valuation for this geographic area: Bruce Zelk – Commercial Appraiser II Highest and Best Use Analysis As if vacant: Market analysis of this area, together with current zoning and current anticipated use patterns, indicate the highest and best use of the majority of the appraised parcels as commercial or industrial use. Any opinion not consistent with this is specifically noted in our records and considered in the valuation of the specific parcel. As if improved: Based on neighborhood trends, both demographic and current development patterns, the existing buildings represent the highest and best use of most sites. The existing use will continue until land value, in its highest and best use, exceeds the sum of value of the entire property in its existing use and the cost to remove the improvements. We find that the current improvements do add value to the property, in most cases, and are therefore the highest and best use of the property as improved. In those properties where the property is not at its highest and best use, a nominal value of $1,000.00 is typically assigned to the improvements. Interim Use: In many instances a property’s highest and best use may change in the foreseeable future. A tract of land at the edge of a city might not be ready for immediate development, but current growth trends may suggest that the land should be developed in a few years. Similarly, there may not be enough demand for office space to justify the construction of a multistory office building at the present time, but increased demand may be expected within five years. In such situations, the immediate development of the site or conversion of the improved property to its future highest and best use is usually not financially feasible. The use to which the property is put until it is ready for its future highest and best use is called an interim use. Thus, the interim use becomes the highest and best use, in anticipation of change over time. 3 | P a g e Standards and Measurement of Data Accuracy: Each sale was verified with the buyer, seller, real estate agent or tenant when possible. Current data was verified and corrected when necessary via field inspection. Special Assumptions and Limiting Conditions All three approaches to value were considered in this appraisal. Sales from 1/2012 thru 12/2014 were considered in all analyses. The intention of this report is to meet the requirements of the Uniform Standards of Professional Appraisal Practice, Standard 6 (USPAP compliant). 4 | P a g e Identification of the Area Name or Designation: Area 36: West Duwamish Boundaries: Northern: Harbor Island Eastern: Harbor Island and Duwamish River to the Boeing Access Rd., then along Lake Washington at S. Graham St. South to SE 1-23-4 Perry St. and the Eastern boundary of Section 3-23-4 and 12-23-4 to 134th St. S. Western: W. Marginal Way and Pacific Hwy S. Southern: 134th St. S. in Tukwila & Martin Luther King Jr. WY S. to the Northern city limits of Renton. Parcel Count: 1,467 parcels under Commercial Assignment Maps: A general map of the area is included in this report. More detailed Assessor’s maps are located on the 7th floor of the King County Administration Building. Area Description: Area 36, or West Duwamish is considered to fall within the close-in industrial market of Seattle, and several of its neighborhoods comprise part of the Duwamish Manufacturing Industrial Center (MIC), or Duwamish Corridor. This manufacturing corridor is considered a finite and limited resource, and a major contributor to the Seattle/Metro economic base. Broadly defined, activities include all types of manufacturing, wholesale, warehousing, construction support, communications, utilities, and transportation. The area is considered to be transitional, as a majority of the facilities reflect an obsolesced manufacturing infrastructure and the area steadily evolves through redevelopment of industrial activity. The Port of Seattle has been and continues to be a significant influence in driving this redevelopment. Buildings tend toward older age, with many over 40 years old, compared to other industrial areas of the region which have higher proportions of more modern tilt-up structures. Specialized facilities are common, due to harbor/port proximity (Port of Seattle), aircraft production (Boeing), and rail infrastructure. Challenges to area redevelopment include ongoing environmental contamination with associated cleanup efforts, transportation conflicts as increased container shipping activity impacts truck and rail traffic, fragmented ownership which has created numerous small parcels making assemblage more difficult for large development, and the continued pressure of encroachment from competing interests 5 | P a g e upon this industrial sector as the region’s economy steadily grows. The West Duwamish Commercial Geographical Area is divided into eight neighborhoods spanning three municipalities as well as Unincorporated King County, and is generally distinguished by zoning jurisdictions and geographic characteristics. Within this broad geographic area are included 1,467 tax parcels assigned for commercial valuation under this report. The following is a brief description of each neighborhood with a general reference to zoning breakdown.