Navigating Rising Interest Rates and Market Shifts in Commercial Real Estate
In today's rapidly evolving commercial real estate landscape, property owners face a myriad of challenges and changes, from rising interest rates and cap rates to fluctuating property values. These factors, compounded by the lasting impacts of the pandemic on office and retail spaces, signal a critical moment for commercial property owners. Here's why acting now to begin the appeals process is not just prudent—it's essential.
Rising Interest Rates and Cap Rates
As interest rates climb, the cost of borrowing increases, which can cool investment activity and lead to higher capitalization (cap) rates. This shift has a direct impact on property values, potentially lowering the value of commercial real estate investments. Property owners must be vigilant and proactive to navigate these changes effectively.
Rising Interest Rates and Cap Rates
As interest rates climb, the cost of borrowing increases, which can cool investment activity and lead to higher capitalization (cap) rates. This shift has a direct impact on property values, potentially lowering the value of commercial real estate investments. Property owners must be vigilant and proactive to navigate these changes effectively.
The Changing Face of Office and Retail Spaces
The Work From Home (WFH) trend, accelerated by the pandemic, has left many office buildings grappling with higher vacancy rates. Simultaneously, the shift towards online shopping continues to challenge traditional retail centers, leading to increased vacancies and diminished foot traffic. These trends not only affect the immediate profitability of these properties but also their long-term valuation.
Why Delaying the Appeals Process Can Cost You
In light of these market dynamics, it's imperative for commercial property owners to reassess their property's current valuation and tax obligations. Waiting to start the appeals process can result in missed opportunities for tax relief and adjustments reflective of the current market conditions.
Moreover, as property values adjust to rising cap rates and evolving market demands, securing a fair and accurate assessment is critical. The appeals process offers a pathway to challenge and correct overvaluations, potentially leading to significant tax savings and a more accurate reflection of your property's true market value.
2023 Property Tax Appeals: Key Dates to Remember
For those looking to appeal their 2023 property taxes, the application window opens in July. However, the deadline for filing an appeal varies by county, closing in either September or November. This timeline underscores the importance of initiating the process sooner rather than later, allowing ample time to build a solid and robust case for your property.
Partner with CRE Tax Pros
At CRE Tax Pros, we specialize in navigating the complexities of the property tax appeals process. Our expertise and strategic insights equip us to advocate effectively on your behalf, ensuring that your case is compelling and well-supported. By partnering with us, you'll not only maximize your chances for a successful appeal but also potentially secure a refund for property taxes already paid, putting money straight back where it belongs—in your pocket.
Don't let the shifting sands of the commercial real estate market impact your property's valuation and tax obligations without a fight. Contact CRE Tax Pros today to ensure you have the best possible representation for your property tax appeal. Let us help you reduce your property taxes and secure the savings you deserve.
Get in touch with one of our specialists today by filling out our easy application form: here. Or alternatively you can always send us an email to info@cretaxpros.com or give us a call at 818-466-6499.
