There's a serious challenge to the PropTax StatusQuo in 2023... a commentary on an article by The Wall Street Journal: Shrinking Office Building Values are becoming a Dilemma for City Budgets.
For anyone in PropertyTaxes, the article, "Shrinking Office Building Values are Becoming a Dilemma for City Budgets" in The Wall Street Journal is a worthy read!
As the makers of Property Tax Management Software, itamlink, we often stress the urgency for organizations to become more proactive in how they manage property taxes.
But *the time really is now* if Peter Grant's article is any indication.
In it, he suggests a mounting storm brewing between cities and building owners over a widening gap in perceived building values.
There may have been relative consensus on what those values were pre-pandemic, and even during the pandemic. However, a pronounced divergence on PropertyValue has taken hold as some semblance of normalcy returns in what we might call the “post"-pandemic.
While taxing jurisdictions assume that property values are growing, property owners argue that valuations should be dropping. With more businesses adopting a HybridWork model and layoffs in the tech sector, is it any wonder that vacancy rates are on the rise?
The effect vacancies will have on property valuations and taxation is yet to be seen, but the trend alone leads to one critical realization for RealEstate businesses:
Optimizing PropTaxMgmt is more vital now than ever.
Property taxes often make up the largest chunk of operating expenses for businesses in this industry. With vacancies impacting rental and lease income, not only do you need to lower your expenses overall, you must determine appeal opportunities strategically.
Only then can you be confident that you're investing time and effort into appeals that will help you can actually defend and win."Business as usual" is no longer viable for any business responsible for property taxes. Being proactive on this front may be what separates the economic winners and losers in 2023.
On January 25th, we hosted a webinar discuss how to Make "Proactive Property Tax Management" Your New Year Resolution. Join us for this 30-minute webinar if you want to prioritize ethically and effectively lowering your expenses in today's unique economic climate.
View the recording here: https://lnkd.in/g9q-MC2W
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