Industrial Plant with Suboptimal Performance
A national manufacturing company with numerous plants across Canada.
One property situated in a tertiary market location in New Brunswick received a new assessment that represented a modest increase of less than 1% to the previous assessment year. However, the plant was not producing at optimum levels as of the effective date of assessment.
Altus Group recommended appeal and subsequently proceeded with a request for review with the assessor. Following the presentation of multiple arguments, the assessors countered with comparable data that pointed to a higher per unit rate under a direct comparison approach methodology. Their indexes included a mix of properties in preferred markets that were then adjusted for economic (or locational) obsolescence. Our position was this adjustment was insufficient. We subsequently created a model that provided a mathematical justification that further strengthened our view.
Our arguments resulted in a 20.8% reduction in the assessed value of the property and tax savings of over $11,027 for the client. We have since been engaged to handle the company’s national portfolio of properties.
Our technology-enabled expert services enable commercial real estate professionals to connect to the market with greater speed, visibility and efficiency.
Connect with us
Want to learn more? Let us know what you're interested in and one of our team members will be in touch.
Last updated on July 29th, 2019 at 03:19 pm