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Are You Leaving Money on the Table?

ATLANTA—“Few companies, even those with largest real estate holdings, have the inside expertise, talent or time to tackle this massive expense that directly affects the bottom line.”

By Jennifer LeClaire | jenniferleclaire | | Updated on May 17, 2016
GlobeSt.com caught up with Anne Sheehan, CEO of Real Property Tax Advisors, to get her take on real estate tax reduction strategies in part one of this exclusive interview. GlobeSt.com caught up with Anne Sheehan, CEO of Real Property Tax Advisors, to get her take on real estate tax reduction strategies in part one of this exclusive interview.
ATLANTA—According to a new survey by Deloitte 88 percent of Fortune 1000 company executives say they will continue to pursue cost reductions over the next 24 months. That’s regardless of company performance. GlobeSt.com caught up with Anne Sheehan , CEO of Real Property Tax Advisors , to get her take on real estate tax reduction strategies in part one of this exclusive interview. Stay tuned for part two, in which she will discuss why C-suite executives should get hands on with this issue. GlobeSt.com: Why should pursuing real estate tax reduction strategies be part of a plan to help meet this or other cost reduction goals? Sheehan: County assessors control 40% of your annual operating costs through property assessments and more than 90% of real estate holdings are over-assessed. Property values increase when companies reduce their operating costs so the impact of challenging and winning a property tax appeal is significant when it comes to cash flow and ultimately the value of your company. A strategic property management plan insures that assessments are reviewed annually and challenged to preserve corporate cash. GlobeSt.com: Why should C suite executives be concerned about property taxes?  Isn’t that something the accountants or the real estate team typically handle? Sheehan: Few companies, even those with largest real estate holdings, have the inside expertise, talent or time to tackle this massive expense that directly affects the bottom line. Too often corporate real estate taxes are treated as just another line-item expense, when, in fact, there are many opportunities to significantly reduce what amounts to your company’s largest cost of occupancy and a company’s largest state and local corporate tax obligation. However, property taxes are complex and vary from state to state. It takes highly specific knowledge of jurisdiction requirements as well as expertise in the valuation of commercial properties as well as time to research, assess and unlock the most advantageous tax-savings opportunities. Most businesses do not have these internal resources and should consider bringing in outside expertise to evaluate property taxes.  

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