Case Study: East Texas Warehouse

⬤ 01. Challenges

Achieving Substantial Savings and Avoiding Litigation for New a Industrial Submarket

In a county east of Dallas, an emerging industrial submarket witnessed the construction of newer buildings. However, the county set the property tax value for multiple buildings at an exorbitant rate of over $120 per square foot in their initial notice of value.

Four buildings, with an initial valuation of $120 per square foot, were affected. Our firm represented two of these distribution centers, which accounted for a combined total of over 800,000 square feet and a total value exceeding $96,000,000.

⬤ 02. Approach

Leveraging Local Relationships to Achieve Significant Value Reductions

Utilizing our established relationships and expertise, we embarked on a proactive strategy to address inflated property tax initial valuations. Through collaborative efforts and informal negotiations, we successfully obtained an informal reduction in the property value to $56.66 per square foot, slashing it by more than half compared to the initial valuation. We did not even have to pursue a formal board hearing because the savings were so large.

⬤ 03. Solution

Substantial Tax Savings, Avoidance of Costly Litigation, and Happy Tenants

While analyzing the other two buildings not under our firm’s representation, it became apparent that both these similar-class distribution centers were eventually valued at $71 per square foot and $75 per square foot, respectively. This discrepancy likely resulted in litigation pursued by their owners, leading to costly legal battles and overpayments from their tenants during the prolonged settlement process. In stark contrast, our client, benefiting from our diligent work, achieved over $900,000 in property tax savings and successfully avoided the burdensome and expensive path of litigation. Our comprehensive approach not only secured substantial financial reductions but also safeguarded our client’s financial interests, providing them with improved financial outcomes.

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