To establish the value of commercial and multi-family properties, the Assessor will consider estimated values determined by the "cost approach" and the "income approach."
The cost approach considers how much money it would take to replace your commercial or multi-family property with one of similar construction, factoring in the current costs for materials and labor and how much your lot would be worth if it were vacant.
If your property is not new, the Assessor will consider how much it has depreciated.
For the "income approach," the Assessor reviews the amount of income your property would produce if it were available for rent as an office space, retail space, an apartment or other commercial use. Using this method, the Assessor considers the market for rents, operating expenses, vacancy rates, and the expected return on the investment.
Income & Expense Survey
Market rents, market expenses, and market vacancy are determined by an Income and Expense Survey required annually from each commercial property owner. Typically, Income and Expense surveys are mailed in late spring.