Commercial Real Estate in Greater Binghamton – BPO’s & BOV’s
Consulting and Advisory Services
As they say life has many uncertainties but the two things that are always certain are death and taxes. The State of New York is a frontrunner in the country in many of the worst categories and property taxes relative to property value is one of them. Unfortunately the Upstate area suffers and Greater Binghamton is a prime example. Prices of commercial property are negatively affected by the aggressive increases in property tax by lowering your NOI (Net Operating Income). Pretty simple, less income = less value.
If your leases are triple net or tax over base year then you don’t feel the impact until your tenant, provided the increases don’t bury them first, come to renegotiate the lease. They will look at the cost of occupancy which includes taxes as well as CAM + Insurance. This results in your rent being seriously scrutinized and potentially lowered or losing a tenant that you had bent over backward for the last 3, 5 or 10+ years. A lot of thanks for all that relationship building work.
Mismanagement of government will always push tax increases to cover unbalanced budgets; however, visiting the assessor at Grievance time can keep the property taxes competitive with like properties. If you own income property like multi families etc. any reduction will add to your bottom line. If you have tenants pay taxes you can build your relationship with your tenant by working to lower their tax burden. Therefore at lease renewal they will be more inclined to accept your terms.
Robert A Mead & Associates can provide the data and representation you need to successfully reduce your tax assessment. By thoroughly analyzing the market and presenting BPO or (Broker Price Opinion) reports or BOV (Broker Opinion of Value) to the assessors we can demonstrate that the assessment is not reflective of the market condition and ultimately reduce your tax burden. This will result in an INCREASE in the value of your property.
Important Dates for Broome County:
- March 1 = Taxable Status
- May 1 = Tentative Roll – Paperwork due to be filed before:
Grievance Day = Fourth Tuesday in May
- July 1 = Final Roll for following year