All About DCAD

One the big news stories this morning is that DCAD has upped the value of the property being considered for the proposed convention center hotel.

One fact has rarely been mentioned in this whole brouhaha…everybody knows that DCAD isn’t a reliable source for commercial real estate valuation. The DMN does provide some behind the scenes info on the DCAD valuation process.

Take a look and see how many perfectly good Uptown apartment buildings have extremely low appraisal numbers. Nobody trades commercial real estate based on DCAD other than to factor the amount of property taxes into holding costs.

I remember the first time I got laughed at by a real estate pro when trying to use DCAD to justify a property value. Their numbers simply aren’t reliable for commercial properties.

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