Archive for category: General Information

By Eric Owens, Director at Swartz and Associates

The decrease in demand for office space since the pandemic has significantly shifted the real estate landscape. Remote work and hybrid models have led to reduced office attendance, with some cities experiencing office vacancy rates increasing by as much as 13%. This decline in demand has directly impacted valuations, with the total value of office space expected to drop by an average of 26% between 2019 and 2030.

Why Are Office Spaces Overvalued?

County Assessors often rely on historical data and standardized valuation methods that may not fully account for the dramatic shifts in office space demand post-pandemic. Many offices remain overvalued because these assessments don’t immediately reflect changes in market conditions, such as increased vacancy rates or reduced rental income potential. Additionally, the lag in updating property valuations creates discrepancies between assessed values and actual market values.

This overvaluation has significant consequences, including:

• Higher Property Taxes: Property owners face inflated tax liabilities despite reduced property income.
• Challenges in Leasing or Selling: Misaligned valuations deter potential tenants or buyers.
• Distorted Government Revenues: Inflated values can create unrealistic fiscal expectations for local governments.

Case Study: Wells Fargo’s Office Property

An example of companies rightsizing their office footprints includes Wells Fargo, which sold a large office property in West Des Moines. Built in 2000, this 425,000-square-foot property located at 7001 Westown Parkway, West Des Moines, IA, was sold to WB Realty for $16,500,000 ($38/SF) in December 2023. At the time, the County valued the property at $73,239,480 ($172/SF), with a property tax liability of $2,298,800.

This overvaluation highlights the disparity:

• Assessed Value: $73,239,480
• Sold Value: $16,500,000
• Overvaluation Amount: $56,739,480
  Applying an effective property tax rate of 3.142%, this overvaluation led to an excess property tax liability of $1,782,754—a striking example of the broader issue plaguing office properties.

 What Can Office Property Owners Do?

For property owners navigating overvalued office spaces, engaging a local property tax advisor can be invaluable. They can assist with:

1. Reviewing assessments and comparing them with current market conditions.
2. Gathering evidence, such as occupancy rates and comparable sales data.
3. Filing an appeal with the County and negotiating a revised valuation.

The pandemic has reshaped the office space landscape, and property owners are now grappling with the fallout of outdated valuations. As market conditions evolve, it is crucial for County Assessors to modernize their valuation practices and for property owners to advocate for fair assessments. Addressing these discrepancies will ensure valuations reflect reality, benefiting property owners and local governments alike.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

By Donald Swartz, President

If you look at the stories we typically tell, we’re trying to educate people about the work that we do… property tax valuations. We also try to share a glimpse into the lives of the team that we’ve built to support you. And sometimes it’s important to give you a deeper dive into the complexities of how property tax valuation works in various locations. In this story, I wanted to share how things work in Johnson County for 2025.

Johnson County, KS recently mailed out the 2025 decisions for those taxpayers who filed an appeal on their valuations. There are several considerations a taxpayer should be aware of in the review of the property tax valuations which are unique to Kansas and not available in other states.

Residential appeals

If a taxpayer filed an appeal and received a decision that warrants a further appeal, there are two options available.

1. Filing an appeal to the Small Claims Division of the Board of Tax Appeals. This must be filed within 30 days of the “Mailing Date” listed on the decision letter.  Legal counsel is not necessary, and the taxpayer can represent themselves in matters before the Small Claims Division. It is helpful to have comparable sales available or a recent appraisal of the property to share with the Board if it is helpful to your case. A hearing date will be scheduled within 60 days of the date the appeal is received by the Small Claims Division.
2. Filing a Supplemental Informal Appeal. If a taxpayer believes the result from the hearing officer at the initial level of appeal is not acceptable, the taxpayer also has this option. When choosing to file a Supplemental Informal Appeal, the taxpayer must engage a 3^rd party, Independent Kansas Certified General Appraiser or a Kansas Certified Residential Real Property Appraiser to determine the value of the property as of January 1, 2025. This appraisal must be submitted to the county assessor’s office within 60 days of the “Mailing Date” listed on the decision letter. If the appraisal is submitted timely, the county has 15 days to review the appraisal. At that time, the county must either accept the appraisal submitted or indicate to the taxpayer they will be engaging a 3^rd party independent appraisal. Our previous experience on this type of appeal has been very effective as there is no discussion or hearing, simply a review of the appraisal submitted.

Commercial Appeals

If the taxpayer does not believe the earlier decision on the informal appeal was correct, the taxpayer may file with the Small Claims Division of the Board of Tax Appeals (value must be under $3,000,000). A taxpayer does not need legal counsel at this level and hearings are held locally in the Johnson County area and not in Topeka.

If the property valuation is over $3,000,000, the taxpayer must file with the Regular Division of the Board of Tax Appeals. This is a more formal process, usually involving legal counsel and expert witnesses to support the appeal. Unlike the Small Claims Division (which as indicated earlier, schedules a hearing within 60 days of receipt of the appeal), hearings may be scheduled several months from the time the appeal is received. It is very possible a 2025 appeal to the Regular Division of the Board of Tax Appeals may not be heard until 2026.

Another opportunity exists for taxpayers in the State of Kansas. If no appeal was filed when the valuation notice was initially issued, the taxpayer has the right to pay the taxes under protest. This allows the property owner to go through the process as though an appeal was filed in the Spring of 2025. The taxpayer may pay the 1^st half OR 2^nd half taxes under protest, but does not have to do both. Additionally, if the taxpayer chooses to pay the entire amount of the tax at one time, the payment under property form must accompany the single payment.

Confusing??? You bet – please let us know if we can be of assistance for your Kansas needs. We will make sure you are aware of all options available to you in your pursuit of a correct property tax valuation.

By Katy True, Operations Manager at Swartz and Associates

In today’s digital jungle, where email inboxes overflow and every screen flashes ads faster than you can say “skip,” Swartz and Associates, Inc. (SAI) stands firmly by the belief that the personal touch of old-school marketing still holds its charm—and power.

Take our favorite retro strategy, Direct Mailers.

Yes, we’re talking about actual paper. Here’s how it works: We craft a one-page letter detailing how property valuation and taxes might impact owners, while offering our expert assistance to ease the burden. We research the market, refine our target list, and assemble our direct mailers like marketing pros—writing, printing, signing by hand, stuffing envelopes, and sending them off with a personal touch that screams, “We care!”

And guess what? The ROI is worth celebrating. Some owners contact us immediately after receiving the letter (instant gratification!), while others tuck our little gem away for years (yes, years), pulling it out when property values surge and calling us like we’re their long-lost allies.

Then there’s radio advertising, another timeless tactic we love.

Currently, we’re spreading the word in Kansas City, Des Moines, and Eastern Iowa, with past forays into the Las Vegas airwaves to dip our toes into newer markets. It’s amazing how many new clients we’ve gained from this classic channel—people hear us on their commute, probably mid-coffee sip, and suddenly realize they need our expertise. And friends and family chiming in with “Hey, I heard your ad!” is an added bonus.

We occasionally mix in a dash of modern with mass email campaigns, but these are mostly reserved for keeping our existing clients in the loop—updating them on market trends, notifying them about important changes, or simply reminding them that we’re just a phone call away for all their property valuation needs.

With dozens of clients secured through these “old-school” methods, we’re here to say: the classics still work. Direct mailers and radio ads might not be the flashiest tools in the marketing toolbox, but when it comes to effectiveness, they’re solid gold. Sometimes, the tried-and-true methods are just what you need in a high-tech world. Old-school marketing—it’s vintage, it’s classy, and it works.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

By Gary A. Stone, ASA, Manager at Swartz and Associates

It is said, “the world is a book and those who do not travel read only one page”. Many of my fondest memories are when I traveled, especially with my family. I think this is true for many of us, which is why we share those memories with others on Facebook or Instagram. Each of the pictures is a story that we love to relive.

My travels have led me to such places as Mexico with my wife, Disneyland with my kids, and eating lunch on top of a waterfall while canoeing through the Boundary Waters of Northern Minnesota. Each one of those trips I can hold in my heart with fond memories.

Traveling is also an important part of our work at Swartz + Associates.

Traveling enables us to learn the story of a property by touring the facility, meeting with our clients, and understanding their operations. It is that story that enables us, as valuation professionals, to provide a thorough picture of our work.

Our trips have led us to facilities like an ice cream factory in Michigan, down a coal mine in Kentucky, a large reverse osmosis water purifying plant in West Virginia, and on top of a grain elevator in Florida (yes, Florida is much more than just beaches and Disney World). These are the experiences we draw from when we conduct our analysis of our clients’ properties.

Wanderlust is defined as a strong desire to discover, travel, and explore, which perfectly captures the curiosity of what drives me. I find that traveling for work is one of the most rewarding aspects of my job. Each journey strengthens my commitment to delivering exceptional service to our clients. Exploring the world fuels both my personal and professional growth.

By David Swartz, Business Development at Swartz and Associates

This is now the beginning of year three working with Swartz+Associates (SAI) and it is still challenging for me to predict what to expect as we enter our busiest work period for property tax appeals. But let’s look back two years, to when I joined SAI and truly didn’t know what to expect in my new role.

The short story of my career change is simple – my brother Don, asked me to join his business in 2023 because he thought I could help identify new clients for SAI growth.

I always understood Don’s business model which focuses on the review and appeal of property values. He’s labored on his methods, team building, and successful results for forty years. My career had always centered on liquid assets within a heavily regulated industry, so I had a steep learning curve to better understand commercial real estate and its sales and management models.

With little working knowledge of how many properties would be entrusted to me for our review, I took a leap of faith that this endeavor would work as well as Don thought. A little bit of fear is a great motivator.

Our history of great results for existing name-brand, Midwest-based companies, and the many meetings graciously accepted by friends, acquaintances, and centers of influence helped me manage the fear. The results so far? The motivation and energy generated new business at 15x greater than goals I imagined!

But what to expect two years later?

Will property valuations continue to rise? – most likely.

Will our new clients ask us to review their properties again? – hopefully.

Will my hours spent at association and industry meet and greets increase my knowledge and bring more engagements to SAI? – results look promising.

We can’t know everything, and the questions above will be answered soon – I look forward to sharing how much more I learned and how we continue to help our clients.
Let me know if we can help you with your property tax appeals!