Retail Stores are typically assessed using the Cost Approach to value. Retail stores are free standing buildings used for retail sales. Appraisal District/Assessors will typically assess these types of properties on the cost approach to a value which leads to the highest valuation of all the approaches. Our office takes into account the individual characteristics of the property in order to properly estimate market value, including the income and sales approach to value.
Factors to consider in getting your free standing retail assessment reduced
- Is this a Build to Suit? Build to Suits have major inadequacies built into them. These buildings are specifically designed and in the second generation market sell for pennies on the dollar.
- Is this big box space? There is almost no market for big box or baby big box space at this time; the larger the building the higher the obsolescence.
- 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 Pizza Hut or Steak and Ale.
- Can you really multi-tenant the building? Often times the assessor says that a property can be multi-tenanted. In reality, this is almost never cost-effective the building was not built for this purpose and usually has too much depth to be a multi-tenant building.