Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
Last December, I was invited by one of my clients to attend a meeting with the Jackson County Assessment Department concerning the upcoming 2017 reassessment of commercial property in Kansas City and the surrounding area.
The purpose of the meeting was to bring together owners/operators of commercial real estate with Jackson County staff and the county’s independent consultant, John Q Ebert and Associates Consulting (E & A Consulting).
E & A Consulting has been hired by the county over the past two years to re-evaluate all real estate parcels. This year commercial property owners will see the results of this effort and we’re anticipating significant increases in values for certain sectors in the community.
We’re anticipating across-the-board increases in the retail, multi-family and hospitality industries.
These are all properties that rely on an income stream as support for the value of their properties. E & A Consulting has been gathering financial data during this time in an effort to value property based on the “Income Approach”. In a nutshell, an income approach is based upon a properties’ ability to receive gross income; subtracting operating expenses for the property leaving a net operating income to the owner/investor. This net income is divided by a capitalization rate to establish a property’s value. Read more
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Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
Last year around this time I wrote about my son’s entry into the driving world. So far, so good, although we sadly said goodbye to my 2003 Saab in the Fall and upgraded to a 2013 Honda Civic with the oh-so-important bluetooth technology! (Side note – we donated the car to our local NPR affiliate. I would strongly encourage anyone looking to “retire” their old car to consider donating as an option. It’s easy and serves the cause of your choice.)
Well, a year has passed and we just recently completed our Spring Break trip, in what I will fondly call March Madness V.2. Imagine mixing in NCAA basketball with college visits and now we’ve uncovered what true March Madness is all about.
Visits to Georgetown, American, Virginia, Richmond, Wake Forest, North Carolina, Elon, Davidson surrounded by the Big Ten basketball tournament in DC and the 1st – 2nd round games in Greenville, SC. Add in an after-trip to Tulane and the question begs to be asked, “What were we thinking?” Finally, throw in another family joining us for the adventure AND another family for the basketball fun and now we are talkin’…… MARCH MADNESS!
Several have inquired, and to be honest, myself included, about the need to see so many schools in a condensed period. How can you tell the differences? Don’t they all start to seem the same? Which school was ranked by which publication as the best (fill in the blank)? What’s the enrollment and did I really hear the tuition correctly? Read more
Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
If you have school age kids, February seems to be the time of grinding through homework. Winter break is over and Spring Break is still 45+ days away. The weather (at least traditionally) isn’t great and teachers are accused of piling it on! With that in mind, I thought I would go to my lesson book and discuss….. Property Taxes 101.
Johnson County, KS valuation notices are being mailed to taxpayers who own commercial real estate this week (all other properties will be mailed out the last week in February). We believe values should be consistent with the previous year’s values with an exception in the multi-family sector.
The multi-family development continues to be rising across the Kansas City metro area and Johnson County is no exception. As you receive your notices, pay attention to the 3-year history on the notice. Has your valuation increased, remained steady or possibly decreased over the past 3 years? If you’re experiencing steady increases in value, there could be a few reasons for this increase: Read more
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Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
As we start to settle in for 2017, rather than stating the usual, “I want to exercise more” or “This year, I plan to lose XX pounds” and the oh so close, “I want to be a single digit handicap”, I decided to create a list of work-related New Year’s resolutions.
This isn’t meant to be my marketing plan, but my resolutions hopefully will allow me to be more effective as a motivator, cheerleader, technician, mentor and business owner:
Delegate. Delegate. Delegate. And then delegate some more.
While I’ve made this a focus in previous years, I must continue to let others handle situations, particularly complex appeals and communications with our clients. I will always be involved, but I want to make sure my employees continue to feel they’re making a difference and are valuable to the organization.
Provide Consistent, Positive Reinforcement.
In our business, we often get so caught up in the “next case, the next review, the next appeal.” I must remain cognizant of the fact we need to take the time to celebrate success and acknowledge and appreciate the efforts of all involved in creating positive results for our clients.
Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
As the 2016 year comes to a close, I thought I would look at the highlights and issues during the year as well as take a look at what may be in store for 2017. I glanced back at my blog written a year ago to see how things turned out. Were we accurate in our predictions?
2016 HIGHLIGHTS
1) Last year I mentioned two separate cases heading to the State Supreme Court. Our case in Iowa was unfortunately reversed by the Supreme Court and the ruling affirmed the county’s initial value. This was a disappointing ruling from a taxpayer perspective and could have a significant influence on single tenant, corporate headquarter office buildings as Iowa prepares for re-valuation of real estate in the 2017 tax year.
2) Our other State Supreme Court case in West Virginia is still pending and the process continues along. This case is definitely challenging the motto, “patience is a virtue” but we’ll stay the course until there is a resolution.
3) We continued to successfully represent special use properties such as big-box retail, theaters and the mining industry. As I mentioned in my October blog, attending the 2016 MINExpo was a fascinating experience and provided us with great insight on the mining industry over the next four years. Changes in technology and the economy will have a dramatic effect on valuations of mining equipment for the foreseeable future and we anticipate being right in the heart of valuation disputes.
4) Our valuation methodology developed in house for properties such as movie theaters and big-box retail found support by unlikely sources…namely county appraisers and assessor’s offices. Due to our implemented strategy we were able to help save our clients millions of property tax dollars as well as develop a more accurate analysis to determine fair market value. Terry Hainje, Senior Real Estate Analyst, was instrumental in creating our concept and we look forward to further developing and refining our methodology.
5) Our midyear hire of David Sukenik continues to pay dividends for the company and our clients. David appears to absorb everything thrown at him while learning the intricacies of valuing commercial/industrial real estate and business personal property. His blend of youthful exuberance combined with our more “seasoned” analysts has created a great working atmosphere that benefits us and our clients.
6) Our database upgrade has exceeded my initial expectations and we continue to modify and expand its capabilities. One goal for 2017 is to create a secure portal so clients will have an ability to review their properties in real time…accessing current values and statuses of appeals as necessary. This is ambitious but necessary to compete in the marketplace.
WHAT TO EXPECT IN 2017
We anticipate a busy 2017 with re-valuations occurring in Missouri, Iowa and Colorado. Add to fact that several states have the ability to change valuations on an annual basis and that means “GO” time for us.
News concerning interest rates and the new Trump administration could have a significant impact on real estate values.
Will real estate remain attractive to investors if bond yields rise?
How will capitalization rates fare on income-producing properties if there’s a proposed interest rate increase?
Kansas faces very significant shortfalls in revenue as compared to the annual budget. Will this continue to put pressure on real estate values for property tax purposes?
A modified income tax plan could put significantly more dollars into corporate pockets. Will companies invest money in equipment and technology? If so, and the company is located in a state where business personal property is taxable, we could see increases in property taxes on business equipment.
Will governmental entities continue with exemptions and “payment in lieu of taxes” incentives? What will this do to the existing property tax base?
Questions, questions, questions! While we don’t have the answers today, we’ll be monitoring these items closely as they will impact property tax values over the next several years.
IN CONCLUSION
I’m fortunate to be surrounded by a caring, qualified team and tremendous partners in the appraisal and legal world. I’m very proud of the team we’ve created and I’m confident in our abilities to continue to represent our clients.
Here’s hoping you had a successful 2016 and will create an even more profitable 2017. Happy Holidays!
If you have questions about your property valuations, email me at or call our office at (913) 766-8777.
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Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
Hard to believe it’s almost time for the holiday season. The saying, “Time flies when you’re having fun” couldn’t ring more true this year as personal and business opportunities consumed the year. My previous blogs have mentioned several of the trips I’ve taken throughout 2016 and I take great pride and joy in sharing them with you.
We approach this holiday season with a new political landscape that few, if any, of us have ever witnessed or experienced…and everyone seems to have strong opinions slanting in one direction or another. I’d like to again take time to focus on the things I’m thankful for, especially in light of the recent election results.
Instead of focusing on the recent election results, I’d like to take some time to highlight a few of the things I’m thankful for:Read more
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Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
MINExpo 2016 in Las Vegas
Recently, Gary Stone and I had the privilege of attending MINExpo 2016. This international convention occurs every four years in Las Vegas, bringing over 50,000 people together to learn more about the mining industry. As their website states, the expo “makes it possible for the mining industry to meet the challenges and capitalize on the opportunities in a rapidly changing world in need of metals, mineral and energy.”
The expo showcased new products, technologies and provided attendees the latest in governmental and regulatory proposed legislation. In a word, it was…AWESOME. Read more
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Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
As I mentioned in my last blog in August, taking my daughter back to college, Round 2, occurred a few weeks ago. It was another fabulous trip of quality time and unexpected twists and turns along the way. For example, who would’ve thought the drive from St. Louis to Indianapolis would’ve included the musical Hamilton blaring through our speakers? (Ok, anyone who knows my daughter won’t be surprised by that revelation!)
In a complete twist of irony, last month I wrote, “…we’ll just have to see where the wind takes us!” Well, the winds took us to the largest outdoor wind chime in the country (How funny is that?), the largest outdoor rocking chair (too big to take a picture) and the largest golf tee. Read more
Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
One of the best things my company has to offer our clients is experience. I’m always quick to promote the fact our team has over 100 years of combined experience in the review of property tax matters, both real estate and business tangible personal property.
Between all of us, I believe there’s very little we haven’t encountered in our review and analysis; from apartment complexes to coal mines; strip centers to manufacturing of airplane parts; $10,000 liabilities to hundred million dollar valuations. Additionally, we’ve been involved in cases from informal appeals to State Supreme Courts. As a result, I’ve always believed that our experience is one of our strongest selling points. Read more
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Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast
Major League Baseball recently celebrated it’s All Star weekend in San Diego and, while the All Star players didn’t have the opportunity to take a break from the “mid-point” in the season, the rest of the league had a four-day vacation from baseball…an opportunity to rest mentally and physically to prepare for the balance of the season.
The same is true for our business as well. Most states that assess business personal property have had the filing deadlines pass and now we transition to reviewing the assessments placed on the property. If the valuations match our filings, our work is complete for the year and our role becomes less active in the remaining months.
In the review of real estate, several appeal deadlines have now also passed. We work hard to ensure these deadlines are met and then file appeals when we believe the value of a property exceeds its true market value. We now transition to the aspect of preparing for hearings – at the Local or State level. This can take weeks, months and, in rare occasions, years. Read more
Post written by Donald Swartz, President and Principal at Swartz + Associates, Inc. | Lover of Chiefs, Royals and golf | Avid “Cruiser” | Poker Enthusiast