How to Use ‘Equal and Uniform’ to Reduce Multi-Family Property Values in Texas

Written on March 14, 2018 at 04:02 PM

By James Sutton, Regional Director - Central South, Dallas
& Bill O’Quinn, Senior Managing Consultant, Dallas

To say the multi-family market in the Dallas-Fort Worth metropolitan area is performing well would be an understatement. Deliveries were up 14 percent in 2017, vacancies were down 4 percent, rental rates were up nearly 7 percent, and cap rates were down almost 20 basis points. From a property tax standpoint, factoring all of these variables into an income approach to valuation would support higher assessed values at the appraisal district level. While this may be the case, there is another valuation method that needs to be considered before giving up on your property tax appeal.

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Categories: Real Property, Apartments, Paradigm Info, Multi Family, Texas

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

U.S. Office Vacancies Drop to 10-Year Low

Written on February 15, 2018 at 12:41 PM

U.S. office vacancies across the major metro areas reached 11.5 percent in December, the lowest rate reported in a decade, due to cautious development and healthy absorption, according tTranswestern's newly released 2017 year-end report on the national office market. Significant net absorption in markets such as Dallas/Fort Worth; San Jose/Silicon Valley; Seattle; Northern Virginia; and Austin, Texas, contributed to this decline in vacancy, as did a deceleration in new construction starts during the fourth quarter.

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Categories: Office, Real Property, District of Columbia, Texas, Virginia

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

Texas Property Tax Deadline Changes for 2018

Written on February 06, 2018 at 01:11 PM

In 2017, the Texas Legislature made changes to the Texas Property Tax Code, most of which became effective on January 1, 2018. Among the changes are new, earlier deadlines for filing Notices of Protest and Personal Property Renditions.

Three important property tax deadline changes are:

  • May 15: The new deadline for filing a Notice of Protest. The previous deadline was May 31. If a Notice of Appraised Value is sent under Code Section 25.19 the deadline is extended until the 30th day after the notice is delivered.

  • April 1: The new deadline for filing a personal property rendition "for property located in an appraisal district in which one or more taxing units exempt property under Section 11.251 (Freeport Exemption)." The previous deadline was April 15.

  • March 31: The new deadline for an application for Interstate Allocation for moveable personal property, including vehicles, vessels and watercraft, commercial aircraft and business aircraft. The previous deadline was April 30.

A summary of the remaining deadline changes are as follows:

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Categories: Personal Property, Real Property, Texas

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

Austin, Atlanta Lead Race to Win Amazon's HQ2

Written on October 26, 2017 at 11:44 AM

After Amazon announced plans in September to build a second headquarters (HQ2) in an undetermined location, hundreds of local officials across North America have submitted proposals to try and win the $5 billion construction investment and 50,000 new jobs for their city. In an effort to lure Amazon, proposals boast potential tax breaks, local benefits and opportunities.

However, Moody’s Analytics metro area analysts ranked the largest metro areas using a data driven approach, and made the case for an individual city based on qualitative judgment. The analysts looked at five factors: business environment, human capital, cost, quality of life, and transportation. It then assigned a number to each city and a weight to each factor to come up with its list of 10 cities. An additional category, geography, was considered, but was not factored into the rankings. Moody's excluded Seattle, the site of Amazon's current headquarters, from consideration.

Below are Amazon's Top 10 Cities, according to Moody's Analytics:

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Categories: Pennsylvania, Georgia, Real Property, Massachusetts, Texas, New York, Florida, Oregon, Utah

Katy ISD OKs Post-Harvey Property Tax Reappraisal

Written on October 04, 2017 at 11:14 AM

On Friday, Katy Independent School District trustees voted unanimously to authorize the reappraisal of property damaged by Hurricane Harvey within the school district boundaries, offering some much needed relief to property owners who were impacted by the storm. According to the Houston Chronicle, initial estimates say Katy ISD could lose between $1.5 million and $3.5 million if there is a temporary reappraisal of damaged property taxed by the school district. However, board members strongly supported the call to offer a property tax reappraisal to help their community and said any temporary financial setback to Katy ISD wouldn't impact the district's core mission.

Fort Bend and Montgomery County were the first counties to enact article 23.02 of the Texas State Property Tax Code, which allows taxing entities to authorize a reappraisal of damaged property in a formally declared disaster area. For taxing jurisdictions that enact the reappraisal, new values will be effective as of the August 31st disaster date and property taxes will be prorated for the days remaining in the calendar year.  

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Categories: Real Property, Texas

Texas Tax Alert: Fort Bend and Montgomery County Enact Disaster Reappraisal

Written on September 14, 2017 at 12:24 PM

There is some positive news for Fort Bend and Montgomery County property owners who were impacted by Hurricane Harvey. On Tuesday night, the Commissioner’s Court unanimously voted to enact article 23.02 of the Texas State Property Tax Code. Section 23.02 provides that “the governing body of a taxing entity that is located partly or entirely inside an area declared to be a disaster area by the governor may authorize reappraisal of all property damaged in the disaster at its market value immediately after the disaster.” 

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Categories: Real Property, Paradigm Info, Texas

Under Water and Over Appraised: How Hurricane Harvey Could Impact Your Property Tax Bill

Written on September 11, 2017 at 05:49 PM

By James Sutton, Texas Market Leader, Dallas 
& Jonathan Sanders, Client Service Leader, Houston

Numerous counties in Southeast Texas are hurting in the wake of Hurricane Harvey, which Governor Greg Abbot estimates could cost up to $180 billion in damages. Unfortunately, property owners are roughly a month away from receiving another costly punch in the gut – their 2017 property tax bills.  Tax bills are based on property characteristics as of January 1st, which could be significantly different than they are now, having just experienced one of the most devastating natural disasters in American history.

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Categories: Real Property, Paradigm Info, Texas




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