M id A tlantic Real Estate Journal — Financial — Appraisal — October 2025 — 7A
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Appraisal
By Carlo L. Batts, MAI, Rittenhouse Appraisals and The Reduxx Group Why now is the time to audit your multi-state property tax bills
M
unicipal revenue pressures and re- assessment cycles
ditions may not reflect cur - rent values, particularly in markets impacted by the shift to remote work or changing retail patterns. Second is the variation in methodologies. Assessors in different jurisdictions may use varying approaches to similar properties, creating disparities that favor some locations over others within the same portfolio. Next is missed appeal dead- lines. With each municipality setting its own deadline, some as early as 30 days from no- tice, busy portfolio managers may simply miss the window
to challenge assessments. Finally is a lack of com - parative analysis. Without systematic review, companies miss opportunities to identify properties assessed higher than comparable assets in similar markets. The Cost of Inaction For a company with a $100 million, multi-state real es- tate portfolio, even a 5% reduction in property tax assessments could yield six- figure annual savings. Over multiple years, the cumula- tive impact becomes substan- tial. This total represents capital that could be deployed
for expansion, improvements, or operational needs. Taking Action Portfolio managers face a choice: build internal capacity to systematically review prop- erty taxes across jurisdictions, or partner with specialists who have the infrastructure in place. The scope of work is sub - stantial. Tracking bills and deadlines across multiple states, conducting compara- tive analysis, understanding local reassessment cycles, and navigating varying regula- tions. Most corporate real es- tate teams lack the bandwidth
and specialized knowledge to handle this while managing core responsibilities. With municipal revenue pressures intensifying, now is the time to establish system- atic review processes, whether through internal resources or external partnerships. The question isn’t whether sav- ings opportunities exist. It’s whether companies have the right expertise to capture them before deadlines pass. Carlo L. Batts, MAI is the principal of Rittenhouse Appraisals and The Reduxx Group, both based in Center City Philadelphia. MAREJ
are creating hidden costs for portfolio owners. For direc- tors of real estate and corporate portfolio m a n a g -
Carlo L. Batts
ers who oversee properties across multiple states, 2025 presents a perfect storm of factors that could be inflating property tax obligations. Federal funding cuts under the One Big Beautiful Bill are forcing municipalities to seek new revenue sources, with property taxes on commercial uses representing the most reliable option. Simultane- ously, many jurisdictions are in active reassessment cycles, creating opportunities for overvaluations that can remain for years if they are left unchallenged. The result? Significant mon - ey may be left on the table by portfolio owners managing doz- ens or hundreds of properties across different states, simply because no one is systemati- cally reviewing the bills. The Multi-State Challenge Single-property owners likely scrutinize their annual tax bill, but companies with multi-state portfolios face a different real- ity. Tax bills arrive from dozens of municipalities, each with different assessment method- ologies, appeal deadlines, and valuation standards. A retail chain with 50 locations across five states could be receiving 50 different tax bills, each requir- ing individual analysis. Even if a company has excel- lent financial controls, prop - erty taxes are often viewed as a fixed cost, rather than a negotiable expense. The level of complexity increases when a company owns different property types. A portfolio mixing office space, warehouse facilities, and retail locations faces different valuation chal- lenges for each asset class, compounded by varying local market conditions. Common Overpayment Patterns We see several patterns where multi-state portfolio owners commonly overpay. First is outdated assess- ments. Properties assessed during stronger market con -
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