When you buy a shopping center, much of the price pays for its leases and tenants. RealAdvice® helps commercial real estate buyers pay only the taxes that they legally owe by separating non-taxable intangible value from taxable real estate at closing.
A leased shopping center’s price typically includes:
Most states don’t tax any of that as real estate. Unless it’s separated before closing, it stays in your assessment and in the transfer tax you pay at closing.
Which of these a purchase includes, and how much, depends on the property and the deal. Rules vary by state.
Our PairedExpert™ approach pairs an MAI (Member of the Appraisal Institute) appraiser for the real estate with a CPA/ABV (Certified Public Accountant, Accredited in Business Valuation) specialist for the lease and business value. Both sign one reconciled ProperTax Appraisal™, typically issued about ten days before closing. The report is restricted to state and local tax use, so it doesn’t change your lender’s appraisal or your federal taxes.
The Florida Department of Revenue approved our methodology in 1991. Courts upheld it in the Disney rulings in 2018 and 2020, and it was vetted in federal bankruptcy court in 2022.
Because lower taxes make your property more competitive. Tenants pay less to occupy the space, which can support rent, renewals, and leasing against competing centers. It also makes your cash flow more predictable.
No. The ProperTax Appraisal is restricted to state and local tax use. It doesn’t change your lender’s appraisal or your federal tax basis.