Property taxes are a sometimes the largest single expense for an office building. A due diligence team should carefully determine whether the leases require tenants to absorb the cost of property tax increases, including those due to a higher assessment caused by a change in ownership. The present owner may have incurred a large amount of tenant improvement costs shortly prior to the sale that are not yet reflected in an increased assessment.

Silver Oak Advisors professionals have over 40 years of Big 4 and Industry experience and can assist your due diligence team with these reviews. Contact us for more information.

 

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