Managing a Decade of Increasing Property Taxes in the Dallas-Fort Worth Industrial Market

Written on March 06, 2018 at 12:49 PM

By Carlos Villatoro, Senior Managing Consultant, Dallas

A prominent national industrial REIT client recently asked for a historical summary of property taxes for a distribution warehouse they were considering purchasing. We were alarmed to see the property had experienced seven consecutive years of significant increases and had already budgeted for another increase in the upcoming year. Unfortunately, this trend is not specific to that one property alone. By 2020, I will not be surprised if we will have seen a decade of continual property tax increases for nearly all industrial properties across the Dallas-Fort Worth (DFW) area. In order to minimize and manage these increases as much as possible, it’s crucial to understand why and how they are happening in the first place.

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Categories: Distribution Centers, Industrial, Real Property, Paradigm Info, Texas, Warehouse

Stay Committed: How to get the most out of your Texas property tax appeal

Written on February 13, 2018 at 12:33 PM

By Carlos Villatoro, Senior Managing Consultant, Dallas

It is no secret that significant commercial real estate investments continue to pour into the great state of Texas. However, if an owner isn’t lucky enough to receive major tax breaks from local jurisdictions as an incentive to invest here, they will have to accept some of the highest effective property tax rates in the country. The tradeoff is that Texans enjoy a relatively low sales tax rate and zero state income tax rate. Fortunately, the Texas Property Tax Code offers multiple appeal recourse avenues, which allow owners and tenants alike to review the property tax liability from a fair and competitive standpoint.

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Categories: Personal Property, Office, Industrial, Real Property, Hospitality, Retail, Paradigm Info, Multi Family, Texas

NREI: 4 Predictions for the Industrial Market in 2018

Written on January 15, 2018 at 03:28 PM
  1. Industrial activity will continue to thrive. There is no indication of a slowdown in this sector for 2018, says Peter Muoio, chief economist at Ten-X. During the latter part of 2017, new demand drivers, including e-retail warehouse distribution and fulfillment space, cloud computing and facilities for legalized cannabis, supported much of the demand in the segment. However, Muoio expects there to be an increased demand from traditional users of industrial space, such as industrial production companies. 
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Categories: Industrial, Industrial & Manufacturing, Retail, Warehouse

CRE Has Been In Ninth Inning For Two Years

Written on November 29, 2017 at 10:42 AM

Many are predicting a leveling out of the commercial real estate market in the coming year. Texas Market Leader James Sutton discussed 2018 commercial real estate trends and the implications of the leveling-out process in the Houston market in this EXCLUSIVE with What are the commercial real estate trends you are seeing in Houston for 2018?

Sutton: Decrease in overall vacancy for industrial properties, as well as a decrease in overall vacancy, increase in rent growth and zero concessions for multifamily properties. In addition, there will be a reduction in office sublease space as a result of the storm (Harvey). This is a short-term correction as a result of the office sector’s issues stemming from the energy market decline.

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Categories: Office, Industrial, Real Property, Retail, Paradigm Info, Multi Family, Texas

Chicago Commercial Property Sales on Pace for Three-Year Low

Written on October 23, 2017 at 03:47 PM

Over the past two years, Chicago-area landlords have capitalized on a strong economy and low interest rates by selling properties at a rapid pace. But after a whirlwind couple of years of real estate sales transactions, deal volume in the Chicago area is finally slowing down. Sales of commercial properties year to date through August were down 20 percent from the same period in 2016, to $9.8 billion, according to New York-based research firm Real Capital Analytics. While nearly $10 billion is still far more action than there was coming out of the Great Recession, it's the lowest amount spent on office, industrial, retail, apartment and hotel properties in the market through the first eight months of the year since 2014.

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Categories: Office, Industrial, Real Property, Retail, Hotels, Multi Family, Illinois

Brace yourself: Property tax increases are coming for self-storage

Written on August 16, 2017 at 02:24 PM


Self-storage is starting to become a victim of its own success. Operators are reeling from a double punch—rising tax rates across many jurisdictions along with higher assessed property values.

The specter of rising assessments is coming just as large and small operators alike are expected to face greater competition from new development and decelerating revenue over the months ahead.

“Taxes have always been a very large expense line item and they are becoming the largest very quickly on almost every property as all of these jurisdictions hustle for more money,” said Kenneth Nitzberg, chairman & CEO of Devon Self Storage Holdings in Emeryville, CA.

Devon operates 46 facilities in 15 states and has seen property taxes rise at its facilities all across the country.

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Categories: Industrial, Real Property, Paradigm Info, Self Storage

U.S. Industrial Vacancy Hits 17-Year Low

Written on June 26, 2017 at 04:22 PM

As sales by internet retailers grow and drive demand, U.S. warehouses are becoming more costly and harder to come by.  Nationwide, the industrial vacancy rate is 5.3 percent, a 17-year low, according to's data hub. E-commerce fulfillment is a big reason why the demand for warehouses and distribution centers has increased of late, Jones Lang LaSalle says, representing about 40 percent of the leasing of industrial properties today.

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Categories: Distribution Centers, Industrial, Retail

Philadelphia Property Tax Revenue to Increase $118M After Reassessing Commercial Properties

Written on March 31, 2017 at 03:05 PM

Philadelphia commercial property owners should expect major increases when they receive their property assessments mid-April. The value of the taxable portion of Philadelphia’s 14,000 commercial buildings went up by nearly 40 percent — from $14.4 billion to $19.7 billion — with the reassessments, an increase that will contribute to the expected $118 million in new tax revenue to be split between the city and school district. This is the first full reassessment of commercial properties since the controversial Actual Value Initiative (AVI) in 2014, which uses actual market values as the assessment standard. 

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Categories: Pennsylvania, Office, Industrial, Real Property, Apartments, Hospitality, Retail, Hotels, Multi Family

Big Changes Predicted for Commercial Real Estate

Written on March 09, 2017 at 10:44 AM

Change is coming even as the commercial real estate market flourishes in the current post-recession boom, Christopher Lee, president and CEO of Los Angeles-based commercial real estate consultancy CEL & Associates, said at the NAIOP Minnesota event this week. Lee predicts a 2018 end to the current commercial real estate cycle and major industry shifts based in part on “generational” factors, including millennials eschewing homeownership, younger workers spending less time in the office, and manufacturing productivity increases fueled by automation and robots. “This is a great time to be in real estate, but you’ve got to be on your game,” Lee said. “We’re in the seventh inning. Our cycle is about to end.”

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Categories: Office, Industrial, Real Property, Retail, Multi Family

Industrial Sector Posts Record-Breaking Performance

Written on March 06, 2017 at 10:26 AM

Continued growth in e-commerce has driven industrial vacancy to an all-time low, declining by 70 basis points from a year ago to an aggregate nationwide vacancy of 5.6 percent in the fourth quarter of 2016, according to the year-end industrial market report from real estate services firm JLL. JLL researcher Aaron Ahlburn says that the former record low vacancy was in 2000, when the rate dipped to a 7.0-8.0 percent range as a result of market expansion coming out of the bubble. Increasing competition for industrial space has caused rental rates to hit record highs, breaking the $5 per sq. ft. triple-net barrier for the first time, Ahlburn notes, and has set off a building boom.

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Categories: Distribution Centers, Pennsylvania, Industrial, Real Property, Indiana, Illinois, Ohio, Warehouse




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