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Description

In a period of challenging market forces, office and industrial properties need to capitalize on every available advantage to secure their position in their market. Owners are experiencing elevated interest rates and capitalization rates. The lingering effects of the pandemic have accelerating shifts in the way many companies do business and expect to use real estate. The best positioned and best managed properties will weather the storm, while others may not. Fixed costs can distinguish a commercial property. Property taxes borne by the owner can dramatically affect the return on investment. Property taxes passed on to tenants can dramatically affect tenant cost of occupancy. A reduction in taxes relative to competitors in the market can provide an advantage in tenant attraction and retention. Though often considered a fixed expense, property taxes can be managed and mitigated with advanced planning and an appropriately aggressive approach to appeals. This session will explain how to accomplish these challenges!

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Track: 

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  Creating Asset Value

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CEU

AIA LU

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Learning Objectives

After attending this presentation, attendees will have a solid, actionable understanding of the following points:
1. Understand how existing rent rolls and historic financial results can mislead assessment officials into believing a property is more valuable than is warranted.
2. Analyze the different space configurations and how it affects market rent and market-level expenses in a tax valuation.
3. Understand how capitalization rates in a tax valuation should differ from cap rates set by investors in the open market.
4. Develop best practices for reducing property tax assessments regardless of the broader market conditions.
5. Understand the types of evidence that can prove that even a fully-leased property suffers from value depreciation and market-based obsolescence.

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Handouts

• Metropolis Handout
• S101 Improving Competitive Advantage Via Property Tax Mitigation