Commercial & Residential Land

Phases of Land Development

  • Raw Acreage
  • Developed Site
  • Utilities Installed
  • Roads in Place

Options for reduction of commercial and residential land assessment values:

  • Make adjustment for size.
  • Make adjustments for shape and depth.
  • Are there easements running through the property?
  • Are their topographical issues with the site?
  • Is there a set-back from the road for development?
  • Was there a developers discount for residential and commercial subdivisions?
  • Are there zoning concerns?
  • Is retention ponding required?
  • Are utilities in place?
  • Is the property in a Flood Plain?
  • Is the property below grade from road?
Convenience Stores

Convenience Stores are typically assessed using the Cost Approach. This approach almost always leads to a higher value compared to the sales and income approaches. Whenever possible a sales and market analysis should be performed on each property.

Options for reduction in your convenience stores assessment value:

  • Is this a Build to Suit property? Build to Suit properties have major inadequacies built in to them. These buildings are specifically designed and in the second generation market sell for pennies on the dollar.
  • Where is the value derived from? Very little money is made at the gas pumps. The profit is generated selling items inside the store.
  • Is there limited parking? Parking limitations can significantly cut into the profitability of a store.
  • Is there a unique, custom design to the space? The more unusual the design the lower the assessment should be. Nobody wants to own an office building that used to be a restaurant or a club.
Farming & Agriculture

Agricultural Special Productivity Exemptions

Superior Tax Resolutions will thoroughly research and analyze your case to get you the largest property tax savings possible.

Superior Tax Resolutions can help file for and maintain your agricultural exemptions.

  • Orchards
  • Native pastures
  • Row crops
  • Timber Exemption
  • Wildlife management
  • Livestock
  • Calculate rollback taxes
Hotel & Motel

These Properties are almost always assessed on the Income Approach to value. Motels have minimal other income with almost all of their income generated from room rental. Hotels often have meeting rooms, ball rooms, restaurants and bars that generate income. The mix of income on hotels can make a huge difference in the value of your property. Typically assessors consider all income the same. We will meet with you to review the different ways to look at this.

Options for reduction in your in getting your hotel or motel assessment value:

  • Has your average occupancy rate dropped at the end of the year?
  • When was your last soft cost remodel?
  • When was the last hard cost remodel?
  • Is new product on the market that might be hurting your occupancy?
  • Are there deferred maintenance or roof repairs needed?
  • Has business value been deducted?
  • Are you self-managing? If you self-manage a hotel a management fee can be expensed in an income analysis of your hotel.
  • How are you handling your Furniture, Fixture and Equipment? A Furniture, Fixture and Equipment reserve is typically added to expenses in an income analysis.
  • Do you pay a Franchise Fee? Franchise fees are also an acceptable expense.
  • Is restaurant revenue being considered? High restaurant revenue is not guaranteed in the future and might be a reason for a higher capitalization rate.
Multi Family Residence

We understand the Multi-family sector:

  • Conventional
  • Low Income (Section 8)
  • (LIHTC) Low Income Housing Tax Credits
  • Military Privatized
  • Senior Housing
  • Community Housing Development Organization (CHDO)

Apartments are typically assessed using the Income Approach to value. The assessor’s estimate of market value will vary depending on type, quality, location, age, and property size. Sometimes Appraisal District/Assessors ignore the specific factors that influence the type of property. We are extremely successful in illustrating and bringing to light those specific factors or unique characteristics, limitations and/or restrictions in order to obtain a fair and equitable assessment.

Our property tax consultants have the experience and knowledge that allow for detailed explanations and presentations to the local appraisal authorities, which lead to huge valuation reductions for you. We are up to date on the changes in the laws affecting any specific type of property.

Options for reduction on your multifamily property assessment value:

  • Has your occupancy dropped at the end of the year?
  • Do your upper level floors have elevators?
  • Is new product on the market that might be hurting your occupancy and rental rate?
  • Is a percent of your rental Section 8 housing?
  • Is there deferred maintenance or roof repairs needed?
  • Do you have obsolete floor plans? (i.e., two story loft floor plan)
  • Have recent new road configuration caused access issues or increased auto traffic?
  • Due to weak demand, are concessions being offered?
  • Are there unusual expenses like condo fees, special assessments or tax increment financing districts?
New Construction

Property taxes are a major factor in determining whether or not new construction can be profitable. Superior Tax Resolutions can perform property tax estimates on new or proposed construction as well as projections based on partial assessments during the construction phase and or the lease-up period. During this time, it is extremely important to establish the initial level of assessment at the lowest possible amount.

Office Buildings

Single Story, Multi Story and Medical Office Buildings

Offices are typically assessed using the Income Approach. Many factors can influence your office value. Is the office building multi- tenanted? Can it be subdivided? Medical buildings can include examination rooms, x-ray facilities etc. Many times personal property that is assessed to a doctor can also be part of the real estate assessment. This is not legal and should be looked at carefully.

Options for reduction of your office building assessment value:

  • Has your occupancy dropped at the end of the year?
  • Do you have different rent amounts for different floors?
  • Is new product on the market that might be hurting your occupancy and rental rate?
  • Are you considering Leasehold Value versus Fee Simple value? In most states Fee Simple Value is the law.
  • Is there deferred maintenance or roof repairs needed?
  • Is a major tenant’s lease term expiring?
  • Have you provided concessions and finish out allowances?
  • Is there a large amount of common space leading to higher expenses than typical? (i.e. an atrium)
  • Is there a high proportion of short term leases which lead to more risk? This can lead to a higher vacancy allowance and a higher capitalization rate.
  • Do you have full service or triple net leases?
  • Who are your tenants? Doctors leasing to themselves often pay higher than market rents.
  • Is there limited parking availability?
Political Subdivision (Possessory Interest)

Property owned by a political subdivision is exempt from taxation unless it is rented or leased for compensation to a private business enterprise. Entities renting or leasing from a political subdivision are subject to taxation under either a “possessory interest” assessment or a leasehold estate. Assessment practices can differ from State to State. Your lease and lease term can have a major impact on the amount of tax you will have to pay. Superior Tax Resolutions can  review your current assessment for you.

Options for reduction of your possessory interest assessment value:

What is the term left on the land lease?
• Is there a lease renewal option and what are the terms?
• Is the current lease in line with today’s market rental rates?
• Who holds the tax liability?
• How does the leasehold Value compare to the Fee Simple value?

Restaurants

Restaurants are typically assessed by the Cost Approach. This approach almost always leads to a higher value compared to the sales and income approach to value. Whenever possible an income and sales analysis should be performed on each property.

Options for reduction of  your restaurant assessment value:

  • When was the last time the store was remodeled? Partial remodels usually take place every five years with complete renovations taking place after approximately ten years.
  • Are there one or more drive-thru windows? More and more fast food business is generated via the drive-thru. If a restaurant does not have room for an additional drive thru, obsolescence may be present.
  • Is there a playground? Children’s playgrounds are no longer profitable and do not generate enough money per square foot to justify them.
  • Is the indoor seating area too large?
  • Is there an antiquated exterior design?
  • What are the smoking and nonsmoking design challenges?
  • Is there limited parking?
Retail Shopping Centers

Shopping Centers are typically assessed using the Income Approach to value. There are different categories for these centers based on their purpose. Regional centers/malls consist of anchor tenants, such as an Kroger or Best Buy. Strip and neighborhood centers consist of a mixture of national and local tenants of average quality and are the most commonly found centers. Central Appraisal Districts/Assessors will typically assess these shopping centers on the income approach using typical market information. Our office takes into account the individual characteristics (including income) of the property in order to properly estimate market value.

Options for reduction of your retail shopping center assessment value:

  • Has your occupancy dropped at the end of the year?
  • Are second floor rents different than first floor rents?
  • Is new product on the market that might be hurting your occupancy and rental rate?
  • Are you considering Leasehold value versus Fee Simple value. In most states Fee Simple Value is the law.
  • Is there deferred maintenance or roof repairs needed?
  • Is a major tenant’s lease term expiring?
  • Have you provided concessions and finish out allowances?
  • Does a portion of the center lack visibility which leads to higher vacancy and lower rents?
  • Is there a high proportion of short term leases which lead to more risk? This can lead to a higher vacancy allowance and a higher capitalization rate.
Warehouse / Industrial / Special Use

Flex Office/ Warehouse Space
This type of property has heavy office ratios with air conditioning and heated areas used for both tech and assembly, typically.

Storage Warehouse
This is typically grade level. This building caters to businesses which provide a product and need to receive and ship items.

Mini- Warehouse
These properties are considered to be cash cows by most Appraisal Districts/Assessors due to their low maintenance cost. This attitude can often lead to higher assessments. It is important to hire a property tax negotiator to explain the hidden costs and deferred maintenance which can lead to substantial assessment reductions.

Industrial/Manufacturing/Distribution Warehouses

With many types of manufacturing being outsourced to different parts of the world there is an overabundance of this space.

Options for reduction of your warehouse industrial special use assessment value:

  • What percent of the space is office vs. warehouse?
  • What is the type of construction (i.e., tilt wall versus corrugated iron etc.)
  • What is the wall height?
  • How much of the space is air conditioned?
  • Is there a manufacturing use?
  • What is the size of building?
  • Is there a Clean Room?
  • What is the Dock Height?
  • Is there an outdated configuration of manufacturing space?