Board upholds revised assessment for 1101 Wilson after debate over imputed rent for long‑vacant dome

Arlingtonassessors' decision to impute rent on a unique, long‑vacant dome and to capitalize a reported one‑time termination fee was the focal point of a contested appeal over the 1101 Wilson Boulevard office building; after argument and board testing the panel confirmed the county's revised assessment.

The appellant argued that the county improperly capitalized a $640,000 one‑time termination fee into 2025 income and imputed $35 per‑square‑foot rent on a 10,413‑square‑foot dome that had been vacant and cordoned off for more than a decade. Appellant counsel told the board that the dome could not reasonably be expected to earn market rent as of the valuation date and that imputing $365,000 of annual rent for a space with no demonstrated market interest inflated the countyNOI projection.

County staff acknowledged post‑date renovations that converted the dome into an auditorium amenity but maintained that imputing some value was appropriate and defended tested income and expense assumptions. The parties also debated concessions, vacancy, and how to treat a coworking tenant who had been negotiating to vacate prior to the valuation date.

After discussion and a series of tests by board members adjusting expenses and vacancy assumptions, the Chair moved to accept the county's revised assessment of $56,274,400; the motion passed with four board members in favor and one recorded dissent (Mr. Pace).

Why it matters: the case highlights how assessors treat unique amenity spaces and post‑date repairs or renovations when reconstructing historical income, and it underscores the impact of single large items (like a termination fee) on capitalized income calculations.

The board confirmed the county figure and proceeded to the remaining appeals.