Case Study: Industrial Complex

Industrial facilities are a key component of any stable real estate market, industrial sector was hit hard by the recent recession and it may never go back to what it used to be...

Solution

Fisk Kart Katz & Regan recommended unifying the various buildings into one 520,000 square foot site; Arrgued that the office portion of the complex should be treated as a necessary part of the industrial complex thereby achieving a more favorable industrial level of assessment for the office component;

Petitioned the Assessor to consolidate the parcel numbers thereby avoiding future assessment challenges to the unification argument, and saving the client significant future appraisal fees.

Result

The client realized an Assessed Market Value approximately $3,300,000 less than the Assessor’s “sum-of-the-parts” value; The client saved approximately $250,000 in real estate taxes per year, going forward, due to the proactive change in valuation methodology instituted.

For more information on industrial complex tax appeals, contact James Regan

Situation

Fisk Kart Katz and Regan was hired to analyze and appeal the taxes on a 520,000 square foot multi-building industrial/office complex in suburban Chicago.

Challenge

The Assessor valued each building within the complex independently thereby establishing a higher market value for the individual parts. The Assessor’s disregard for the inter-relation of the individual buildings caused the client to pay more tax than was appropriate for such a complex.