Commercial property tax appeals
For income-producing property, assessors usually estimate what a building should earn. We replace the estimate with what it actually earns.
How commercial property is valued
Net operating income divided by a capitalization rate. The usual method for office, retail, industrial and apartments.
Where it goes wrong
Market rent where the actual rent is lower. Vacancy and expenses taken from a table, not your books. A cap rate that doesn’t fit the building’s risk.
What similar properties have sold for, adjusted for differences in size, age, location and condition.
Where it goes wrong
Sales from a stronger submarket, sales that included a business or leases above market, and adjustments that don’t hold up.
Land value plus the cost to replace the building, less depreciation. Common for special-purpose and newer property.
Where it goes wrong
Depreciation that ignores physical wear, functional problems or a weak location, so the building is valued as if it were new.
Why the value matters
Your tax bill is the assessed value times the local rate. The assessed value is a fixed share of market value, so an overstated market value carries straight through to what you pay, every year until it’s corrected.
What to send
Start with the assessment notice. The rest helps us tell you, at the first review, whether the number can be moved and by roughly how much.
Investors and portfolios
A sale often triggers a new look from the assessor. We estimate the tax the property is likely to carry after closing, so it goes into your underwriting instead of surprising you in year one.
One calendar for every property, every county and every deadline. We review each reassessment across the portfolio and appeal where the evidence supports it.
Questions
For income property, yes. The assessor usually works from market estimates. Your actual income and expenses are often the strongest evidence you have, and they are used only for your appeal.
Often, yes. A recent arm’s-length sale is strong evidence of market value. If the assessment is above what you paid, that price is usually the first exhibit.
Usually. Under a net lease the savings pass through to tenants, which lowers their occupancy costs and makes the space easier to lease and renew.
The first review is free. If an appeal makes sense, you’ll get the fee arrangement in writing before anything is filed.
