ICOnic News | What are the Options for Commercial Property Owners in 2024?
WHAT ARE THE OPTIONS FOR COMMERCIAL PROPERTY OWNERS IN 2024?
Many county appraisal districts (CADs) across the state have released 2024 property values and others are in the process of finalizing this years noticed values. Commercial property owners will likely be disgusted by what seems to be an out-of-touch opinion from their appraisal district. HCAD commercial valuations are still pending as of this writing, however Fort Bend Central Appraisal District recently released noticed values showing commercial accounts increased overall by 47.4% in 2024. This is in stark opposition to the commercial property value trends cited by Green Street Real Estate in their April 4, 2024, report where it is noted that commercial real estate is down 7% over the past year and down 21% since its March 2022 peak.
The cap instituted by Texas Legislature in 2023 for commercial property valued less than $5 million for the tax years 2024, 2025, and 2026 is of minimal consolation because the brunt of 2024 increases seem to target accounts over the threshold eligible for the cap. It is anticipated that record numbers of Texas commercial property owners will seek relief through the appeals process.
Simply contesting noticed values at the informal level and with an appraisal review board hearing on a consistent basis has proven effective over the years, but business owners will likely find it to their benefit to advance their appeal. Commercial owners with values less than $5 million may deem it in their best interest to advance their protest through binding arbitration.
Alternatively, property owners may find their relief through the State Office of Administrative Hearings (SOAH). This type of review requires a $1 million appraisal review board value minimum and a $1,500 deposit that will be returned if the case is settled. Commercial property owners who wish to avoid diverting internal time and resources from their primary function may seek the advice of a property tax consultant to determine their best course of action.
*2022 is the most recent year for which data is available.
As we enter into the warmer months of the year, Picnic and a Property embarked into the well air-conditioned office building located at 4800 Sugar Grove in Stafford, Texas. Christa Therkildsen, Jane Nodskov and Kelsey Davis handle all of the leasing negotiations for the building, as well as the entire 450,000 SF office portfolio. We enjoyed a little friendly competition with a scavenger hunt around the property highlighting the propertys amenities including electric car charging stations, tenant lounge and Peloton room. Teams of two raced against the clock to find the right answers which created excitement and collaborative teamwork. Timothy Brown and Amanda Igo were awarded as the winners, but there are no losers when you are spending time with your co-workers.
