Property Tax Case Study – Texas Mixed-Use Office Space

Issue

Our Client’s property, a newly completed mixed-use office space in Dallas, TX, was notified at $69,404,480 based on cost. The appraisal district would not consider the impacts of the pandemic in their 2020 valuation.

Approach

Alex Pace, our lead consultant on Texas Office, valued the property based in the income, cost, and sales approaches to value. He compared the property to similar, comparable assets in the area and made adjustments based on market and physical factors such as size and rent. In our income and sales approach, we factored in additional risk due to COVID-19, even though it occurred after the lien date. After our first appeal, the assessed value was reduced to $51,580,000, saving over $366,500. Next, Invoke pursued equity in litigation. To get ahead of the district, Invoke commissioned a 3^rd party equity appraisal once litigation was filed.

Results

Invoke utilized section 42.23 of the tax code that allows the taxpayer to elect Market, Equal and Uniform, both, or neither. By electing Equal and Uniform, Invoke now controls the content/timing of the settlement conversations and puts deadlines on the appraisal district they have to meet otherwise the district must agree to the taxpayer’s opinion of value on top of the already achieved $366,500 in savings and $17.8 M reduction in value.

Alex Pace

Director of Property Tax – Central Region

Texas Office Consultant

Alex Pace serves as Director of Property Tax, Central Region for Invoke, specializing in office and retail real estate. As an experienced property tax consultant, Alex brings an in-depth and inventive approach to the latest office and retail valuation techniques, appeal procedures, and property tax law. Alex directs the continued growth and development of Invoke’s Texas practice, enabling the company to further service existing clients’ portfolios as well as develop new relationships across the commercial real estate industry.

Learn More About Alex Contact Alex Pace