Fighting For The Underdogs In Commercial Property Tax Appeals

3 ways to assess commercial property value for an appeal

On Behalf of | May 1, 2020 | Commercial Property Tax Appeals

Assigning a value to a commercial real estate property can be a complicated and intensive process. Commercial real estate is not appraised in the same way as residential properties that rely on the other properties located in their immediate vicinity. There are a number of methods available that provide practical frameworks for establishing value. 

Why appraisal is vital to commercial property tax appeals

One of the primary methods for reducing a commercial property tax assessment is to provide evidence that the value used for that property is too high. There are several common tools for delivering recognized alternative valuations of a property:

  • Income: For commercial properties that facilitate income sources related to that property, income can be an effective way of estimating value. The historical cash flow statements can be used to project the amount of money that leases generate (and whether these leases fluctuate over time).
  • Markets: This method is similar to the way that residential properties are assessed but varies in that the properties you compare your commercial property to would have to be similar in size, use, accessibility, proximity to population centers that could augment demand.
  • Cost: By providing the cost analysis for building a similar or new structure as the one present, you can submit an up-to-date valuation of the property. This method can take into account square footage, materials, and the number of units available within the structure.

Finding a more accurate valuation of your property

If you’re looking to appeal a commercial property tax that you believe was inaccurate or inflated, contact an attorney with in-depth knowledge of property appeals to guide you through this multi-faceted and complex process.