Improving Competitive Advantage through Property Tax Mitigation

Partner Ben Blair and associate Abe Benson spoke together at the BOMA International Conference & Expo on a session titled, “Improving Competitive Advantage through Property Tax Mitigation.”

In the session, the Blair and Benson spoke on how in a period of challenging market forces, office and industrial properties need to capitalize on every available advantage to secure their position in their market. Owners are experiencing elevated interest rates and capitalization rates. The lingering effects of the pandemic have accelerating shifts in the way many companies do business and expect to use real estate. The best positioned and best managed properties will weather the storm, while others may not. Fixed costs can distinguish a commercial property.

Property taxes borne by the owner can dramatically affect the return on investment. Property taxes passed on to tenants can dramatically affect tenant cost of occupancy. A reduction in taxes relative to competitors in the market can provide an advantage in tenant attraction and retention. Though often considered a fixed expense, property taxes can be managed and mitigated with advanced planning and an appropriately aggressive approach to appeals.