Commercial Real Estate

Commercial Real Estate

Exclusive of debt, property taxes can be the single greatest operating expense incurred by a business property owner. Because taxing jurisdictions are afforded the presumption of correctness, the taxpayer is burdened with proving the assessment exceeds fair market value.

There is something you can do about your high property taxes, and we can help! And although different states may refer to the challenge as a property tax appeal or property tax protest, for the most part, the appeals process is treated in the same manner for both real and personal property tax.

Case Studies

We secured a national hospital operator $690,000 in commercial real estate property tax savings. Read More
Our property tax experts appealed and reduced the market value by $19M for the facility each year since its opening. Read More
PVS reduced the assessment by $25M, resulting in $204,918 in tax savings for our client. Read More

A national hospital operator recently constructed a brand new building in place of an older facility. Upon opening, the old facility was vacated except for a minor amount of space for office use. The old hospital was functionally obsolete, having arrived at the end of its economic life as an acute health care facility. Local assessors maintained the same value on the former hospital even after it was vacated and no longer operational. As a result, PVS worked to revalue the former hospital facility by quantifying functional obsolescence.

In 2018, an assisted living facility was constructed in Michigan, opening shortly before the global pandemic. The facility faced issues filling the facility and paying expenses due to the worldwide pandemic. The property tax experts at PVS helped quantify this external obsolescence to calculate the true market value of the facility, given the circumstances of the pandemic.

In their property tax appeal, PVS represented an expansive corporate office campus in Fulton County, GA. The campus contained a gym, restaurants, wellness center and parking garage, valued at over $86M. The property was developed for over $100M in 2017. The county backed into the development costs using an erroneous income approach model without accounting for multiple floors of shell space.

Commercial Real Estate

Have Your Commercial Real Estate Property Reviewed by a PVS Property Tax Expert!

Property Valuation Services has been successful in assisting taxpayers with identifying and proving their true fair market value. Remember, an appraisal is an art, not a science.

Are your real estate assessments being thoroughly reviewed each year?

Due to the mass appraisal approach and the sheer size and complexity of commercial properties, all assessments should be reviewed annually. Property Valuation Services has a diversified group of business tax professionals and appraisers who specialize in the review of valuation methodologies and how they relate to a property’s true market value. Property Valuation Services’ tools, communication and techniques have been utilized as key components toward successfully producing reductions. Full real estate tax representation services:

  • Assessment-Reduction Services
  • Compliance Services
  • Assessment and Tax Bill Approval
  • Appraisal Services
  • Reporting
  • Appeals
  • Assessment Uniformity Studies
  • Abatement and Exemption Research
  • Tax Accrual Forecasting

PVS Philosophy

There are several components to consider when valuing complex properties: real property, business personal property and business value. PVS recommends that every assessment be thoroughly reviewed to expose errors that lead to over-assessments.

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Complex Properties

PVS specializes in helping organizations with complex properties such as:

  • Manufacturing Facilities
  • Regional and Super Malls
  • Hotels, Resorts and Country Clubs
  • High-Rise Office Buildings
  • Hospitals and Related Medical Facilities


Process to Recovery

As your representative, we will:

  • Evaluate your assessment for tax reduction
  • Prepare an analysis of taxable value
  • Explain our position for tax reduction
  • Explore and pursue all reasonable reliefs


Methodology for Recovery

PVS will evaluate the assessed value of your real estate property in light of variables such as equitability, building age and type, improvements needed, vacancy, income, all forms of depreciation and the highest and best use of your property. In the case of healthcare properties, we also take into consideration additional items such as The Balanced Budget Act, referral contracts and payor mix.

If the assessed value is excessive, we develop a strategy, inform the local tax assessor on the basis for an appeal and, if necessary, file an appeal. PVS prefers to work with, not against, the local assessing jurisdiction to achieve a value that is in the best interest of our client.

How Is Property Tax Calculated and Collected?

There are two main components to your annual property tax bill: value and tax rate. Your property's market value is first estimated by the local assessor, who transfers it to the tax collector, who mails the bill and collects tax.

So how does the assessor estimate your market value?


Cost


What would if cost to purchase land and build the current structures, less depreciation?

Sales Comparison


Utilizes nearby, recently sold comparable properties to estimate the potential sale price of the subject property.

Income


Estimates a property's market value today based on its future cash flows (NOI or market rental rates divided by capitalization rate)

Is Your Property or Building Obsolete?


If current technological or market changes affect the use, layout or demand for your business or building, you may be facing obsolescence: a form of depreciation.

Talk to an appraisal expert today and learn how these changes may affect the value of your property now, and into the future.

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