Property Tax Case Study – Texas Office

Fortune 150 Headquarters | Dallas County, TX

By the Numbers

$49.43M

Reduction in Value ($)

30%

Reduction in Value (%)

$1.35M

Tax Savings Achieved

Issue

Our Client’s property, the headquarters for a Fortune 150 company in Dallas, TX, began an addition of more than 100,000 square feet in the previous tax year. The appraisal district would not consider the impacts of the pandemic and factored in the additional square footage to the headquarter location in their 2020 valuation. The appraisal district increased the property value from $127.35 M to $168.08 M, increasing their tax liability by over $1.10 M.

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.

Results

When all said and done Alex achieved a value of $118.65 M and saved over $1.35 M in property taxes without having to proceed to litigation. When including their surrounding real estate holdings and investments, our Client saved over $2.05 M in property taxes for 2020 and their overall tax liability was settled lower in 2020 than in 2019.

Director of Property Tax - Central Region

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.