With inflation, rising energy costs, supply chain interruptions and continued fallout from the pandemic exerting financial pressures on commercial property owners, Incenter Tax Solutions is urging clients to find new ways to maximize savings. This would include scrutinizing their property tax assessments, according to a release from Incenter Tax Solutions.
“As property values continuously rise and fall with market conditions, these assessments are not always adjusted properly, especially in the current commercial market,” Incenter Tax Solutions President Alison Tulio said in the release. “We are telling our clients to be proactive and have their assessments reviewed annually so they never overpay.”
According to the National Taxpayers Union Foundation, various experts estimate that between 30 percent and 60 percent of taxable property in the United States is over-assessed.
Lowering assessments could free up capital for property improvements, help compensate mall owners for the loss of anchor tenants and give multifamily property owners an edge when competing for new renters.
“The opportunities to leverage this potential source of hidden savings are numerous,” Tulio said.
A few examples include:
- Reducing (or not raising) rents to keep tenants happy and prevent them from leaving for “somewhere better.”
- Adding amenities, collaborative spaces and safety/security improvements to make buildings more attractive for hybrid work.
- Repurposing restaurants to accommodate less dining in and more takeout/delivery.