Skip to Content

The keys to successful commercial real estate tax appeals

Metaphor on why cement is the key to solid tax appeals

This post may be as close as we’ll get to offering up too much of our secret sauce for commercial real estate tax appeals to competitors creeping on our site. However, we’ve got plenty more aces up our sleeve and are feeling pretty bullish about our competitive advantage these days.

The house of successful commercial real estate tax appeals is built on the foundation of solid research. We start with a simple set of reports that lead to results as solid as poured concrete. And here they are:

  1. Change in reported sales year over year for tenants
  2. Tenant rent delinquencies and outstanding accounts receivable
  3. Sales-to-occupancy cost ratios

Each of the above may show correlations between tenant performance and property risk profile. Identifying a clear risk allows us to more effectively argue the property’s income valuation warrants a higher capitalization rate, vacancy/collection loss, and changes to assumptions such as longer lease-up time frames and higher concessions.

Analyzing trends related to sales, rent delinquencies and sales-to-occupancy costs can also speak to sub-market health. This can inform changes in broader market conditions, which in turn impact the valuation of the property in question.

They’re not the only things we use to mix the concrete. But if they’re not part of your current tax provider’s aggregate, give us a call before you start pouring.

Back to top