Results at a Glance
- $135.9 Million assessment reduction
- 40% decrease in assessed value
- Approximately $1.56 Million in anticipated annual property tax savings
Client
A global pharmaceutical and biotechnology company operates a large office and laboratory facility on the east coast. Spanning more than 635,000 square feet, the property supports specialized business and research functions within one of the country’s most active life sciences markets.
Specialized office, laboratory, and research space requires careful analysis to determine an accurate market value for property tax purposes.
Challenge
The company pursued a pharmaceutical property tax appeal after determining that the property’s nearly $336 million assessed value appeared to exceed its market value. A previous appeal handled by another firm had been unsuccessful, leaving the organization exposed to a substantial ongoing property tax obligation.
The company engaged DMA to independently evaluate the assessment and determine whether the available property and market evidence supported another appeal. The engagement required a detailed understanding of a large, specialized office and laboratory asset, as well as the ability to present a well-supported valuation position to the taxing jurisdiction.
Solution
DMA conducted a comprehensive assessment review using market research and valuation analysis. After identifying evidence supporting a lower value, DMA prepared and filed the appeal, represented the company at the hearing, presented its valuation position, and negotiated with the taxing jurisdiction.
Result
DMA secured a reduction in the assessed value from $335,924,400 to $200,000,000. The outcome reduced the assessment by $135,924,400—a 40% decrease.
The revised value is expected to generate approximately $1,566,000 in annual property tax savings for the company.
Why DMA?
The company selected DMA based on positive experiences from previous engagements, including DMA’s history of delivering savings and responsive client service.
For pharmaceutical and biotechnology companies with high-value office, laboratory, and research properties, accurate assessments can have a meaningful effect on operating costs. DMA combines property valuation analysis, market research, appeal preparation, hearing representation, and negotiation to help companies identify overassessment risk and pursue supported tax savings opportunities.
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Before making any decision or taking any action based upon information contained on this website, you should consult with a DMA professional.