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Currently operating as the Tesla auto assembly plant, our professionals conducted the property tax appeal for the prior owner. At the time of appeal this was the highest assessed property in Alameda County. Our professionals prevailed via settlement after commencement of the hearing. The property was over 4.3 million square feet of improvements.
This was an appeal for a recently constructed power plant in Orange County. WPA conducted the tax appeal of both real estate and personal property for several years. The appeals included construction in progress, value upon completion, possessory interests, real property, personal property, fixtures, economic obsolescence documented from several sources, base year appeals, prop 8 appeals, and evidence presented via written reports, experts, and testimony. Due to the thorough nature of the documentation and presentation by WPA professionals, we prevailed in a settlement mid-hearing. The result was one of the largest tax savings for a single site in California history.
Increasing Federal Funds rates, driving up interest rates, warranted adjustments to the economic outlook for a wide range of investment property as of late 2022. The Conference Board is a non-profit think tank which addresses economic issues, among a range of subjects. In late 2022, they made the following statement:
“The Conference Board forecasts that US economic weakness will intensify and spread more broadly throughout the US economy over the coming months with a recession to begin around the beginning of 2023. This outlook is associated with persistent inflation and rising hawkishness by the Federal Reserve.”
Key to the timing in the cessation of Federal Funds rate hikes is how long it will take before inflation is brought to lower levels. In July 2023, the Conference Board expressed the view that this may not occur until the end of 2024. Their discussion of this point was as follows:
“On inflation, we expect to see progress over the coming quarters, but the path will be bumpy. In Q2 2023, we forecast a large decrease in the reported year-over-year PCE deflator due to base effects. Starting in Q3, rents, which are a significant contributor to faster inflation, are expected to cool. However, this does not mean the fight to tame inflation is over – far from it. We expect year-over-year inflation readings to remain at about 3 percent at 2023 yearend and that the Fed’s 2 percent target will not be achieved until the end of 2024.
On this basis, it was anticipated as of early 2023 that further increases in Federal Funds rates may continue through year end 2023 and into 2024. Further increases in lending rates may drive up capitalization rates in some markets and may also temper the demand side if economic softening leads to lower retail spending.
Contact Western Property Advisors now and let our experts guide you through the appeals process. Take control of your taxes and maximize your savings!
Industrial properties, such as warehouses, factories, and manufacturing facilities, carry substantial property tax liabilities. These taxes contribute to local government funding for essential services such as schools, infrastructure, and public safety. However, the assessment of industrial properties may not always reflect their true market value, leading to potential overvaluation.
If you believe that your industrial property has been overvalued or assessed unfairly, you have the right to appeal your property tax assessment. An appeal allows you to present evidence and arguments to challenge the initial assessment and potentially achieve a reduced tax liability. Engaging a professional property tax advisor, like Western Property Advisors, is crucial to navigate this complex process effectively.
The industrial property tax appeal process in California involves several steps:
Contact Western Property Advisors now and let our experts guide you through the appeals process. Take control of your taxes and maximize your savings!
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Director, Valuation Services
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