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Board backs county revision for 1501 Wilson Boulevard after debate over lease evidence and CoStar data
Summary
At a hearing over the assessment of a 130,000-sf office property at 1501 Wilson Blvd, the appellant pressed for a $35/sf vacant-office rental rate citing a July 2025 lease and alleged CoStar errors; the county cited market averages, owner strategy to sell, and parking/expense adjustments. The board approved the county's revised assessment by a 3-1 vote.
The Arlington County Board of Equalization approved the county's revised assessment for the 130,000-square-foot office building at 1501 Wilson Boulevard following a contested hearing about the correct vacant-office rental rate and reliability of CoStar leasing data.
Appellant representative Mr. Harmon told the board the only market lease in the past five years was a July 2025 spec-suite transaction at $35 per square foot and that CoStar showed "no data available" for vacant floors (which he said CoStar treats as occupied). He urged the board to set the vacant-office rate at $35/sf rather than the county's $41/sf assumption. "That office lease was signed last July ... for $35 a foot," Mr. Harmon said, and he accused CoStar of listing "ghost tenants" that skew lease data.
County appraiser Mr. Peralta responded that the owner purchased the property in 2024 and that evidence — including a published article attached to the packet — indicated the owner may be repositioning or seeking to sell the asset, which can affect leasing behavior and rents. He also noted submarket averages and the county's tests for parking and expenses that informed a revised value. "This firm's strategy focuses on acquiring, developing and repositioning office buildings and to sell," Mr. Peralta said.
Board members debated whether the single $35/sf lease or the county's broader market indicators should prevail. Some members said the property's age and localized market conditions supported a lower rate; others said submarket data and the owner's actions supported the county's assumptions. The board voted 3-1 to confirm the county's revised assessment of $14,882,800.
The board recorded the vote and closed the case; no additional staff directions were issued.
