General Information Archives - Swartz + Associates

Iowa Multi-Family Owners: Your Property Tax Bill Is Going Up – Here’s Why

July 13, 2026/in General Information/by David Swartz

By David Swartz, Business Development at Swartz and Associates

Property tax reform was a major goal to complete in Iowa and Governor Reynolds recently signed the changes into law.

Here are three points we think impact the commercial property owners we serve in Iowa.

1. How Revenue Caps Affect Cities, Counties, and Your Tax Levy

This bill impacts how cities and counties manage capped revenue on their general funds affecting budget planning, re-evaluating economic development incentives, and communicating the tax rates more effectively in keeping with these revenue caps. We only focus on a property’s assessed value and its comparability to similar properties – which was not affected by this legislation, but remains an integral part of how you can best manage the ultimate annual property tax liability paid once the levy has been set.

2. The Roll-Back Change: What Multi-Family Owners Can Expect to Pay

The “roll-back” mechanism used to adjust multi-family property valuations similarly to homes will now change and become 6% less advantageous by 2030. Prior to the legislation, a $3m multi-family property in Des Moines would have expected an approximate reduction in value to 44% of the 2026 property’s market value before taxes are applied. That similar property will only experience a roll-back calculation of approximately 47% in the subsequent year and a cap of 50% of the market value. This increase in the valuation on which the tax levy is assessed is shown below.

Example of how multi-family properties under roll-back changes

Property value = $3,000,000*	Tax – 4.02% current total levy rate *
Current Roll-back 44%	$53,064
New Roll-back by 2030 50%	$60,300

* Assumes no growth in property and no change in levy. Historically we see 9% growth in values and less than 2% change in levies.

3. Other Commercial Property Classes: What Stays the Same — and What to Watch

No changes were made for other commercial property values outside of the multi-family example referenced. We feel valuations for central business district office space and other B-grade space will remain a significant priority for our review. High interest rates will continue to impact cap rates used to value all other asset classes with retail and older warehouses drawing considerable interest.

Change is a constant in any business atmosphere, and our experience working with local jurisdictions across the country allows us to be nimble and creative. 2027 will be the next assessment year in Iowa when all the properties are reviewed for reassessment and the law’s effects will begin. This is a perfect time to start planning ahead for what impacts you might expect and how we can position you with proper strategies.

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!

Correcting Over-Assessed Retail: What CFOs and Tax Directors Need to Know

July 6, 2026/in General Information/by Eric Owens

By Eric Owens, Director at Swartz and Associates

Across the country, big‑box and mid‑box retail properties are being assessed at values that often have little connection to today’s market reality. Even as retailers consolidate footprints, renegotiate leases, and adapt to shifting consumer behavior, many jurisdictions continue to value these assets as if the market were frozen in time.

For owners and occupiers, the result is predictable: inflated assessments, higher tax bills, and unnecessary pressure on NOI.

But the bigger issue is this — most of these overvaluations are avoidable once you understand why they happen and how to challenge them effectively.

1. The Dark Store Debate Has Confused the Playing Field

Many assessors resist market evidence from vacant or second‑generation big‑box sales, arguing that these transactions don’t represent “market value.”

But here’s the reality:

Most big‑box buildings are built for a single user,
They have limited alternative uses, and
Their resale market is dominated by second‑generation buyers, not first‑generation build‑to‑suit tenants.

Ignoring these sales leads to artificially high valuations that don’t reflect true market demand.

2. Contract Rent vs. Market Rent Is Often Misunderstood

A common issue: assessors rely on contract rent from long‑term leases rather than market rent.

For many big‑box and mid‑box stores, contract rent reflects:

A lease signed 10–20 years ago
A credit‑driven rate, not a real estate‑driven rate
A structure that doesn’t match today’s market conditions

Market rent for second‑generation space is often significantly lower, especially in areas with:

High vacancy
Declining foot traffic
Competition from newer retail formats

When assessors capitalize contract rent, the valuation becomes inflated by design.

3. Functional Obsolescence Is Real — and Often Ignored

Big‑box buildings age quickly. Ceiling heights, loading configurations, parking layouts, and mechanical systems often don’t match the needs of modern retailers.

Yet many assessments assume:

Zero functional obsolescence
Zero external obsolescence
Zero cost to retrofit

In reality, the cost to repurpose a 50,000–150,000 sq. ft. box can be substantial — and that cost directly affects market value.

4. Comparable Sales Are Frequently Misapplied

Assessors often rely on:

Sales of occupied, credit‑tenant stores
Build‑to‑suit transactions
Portfolio sales with allocation issues

These are not market indicators for fee‑simple value.

The more accurate comps are:

Vacant or near‑vacant big‑box sales
Second‑generation transactions
Properties sold for alternative uses (churches, gyms, storage, etc.)

These sales tell the real story of what the market is willing to pay.

5. Cap Rates Used by Counties Are Too Low

Retail cap rates have expanded in many markets, especially for:

Power centers
Standalone big‑box stores
Secondary and tertiary locations

But many counties continue to apply cap rates that reflect a different era — sometimes 100–200 basis points below current market expectations.

A low cap rate + inflated income = a valuation that’s disconnected from reality.

What CFOs and Tax Directors Can Do About It

A strong appeal strategy for big‑box and mid‑box retail should include:

Market rent analysis using second‑generation comps
Vacancy and downtime modeling that reflects real absorption
Functional and external obsolescence studies
Cap rate support from current market surveys
Fee‑simple valuation evidence, not contract‑rent‑driven numbers
Sales comparison grids using appropriate comps

When these elements are presented clearly, assessors often have little choice but to adjust the value.

The Bottom Line

Big‑box and mid‑box retail is one of the most commonly over‑assessed property types in the country. Not because assessors are acting in bad faith — but because the valuation models they rely on haven’t kept pace with the realities of today’s retail market.

For owners and occupiers, the opportunity is significant: correcting an inflated assessment can produce meaningful, recurring savings and immediate NOI relief. If your retail portfolio hasn’t been reviewed recently, now is the time.

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!

Savannah Bananas: Sometimes you just have to sit back and laugh!

June 29, 2026/in General Information/by Don Swartz

By Donald Swartz, President

As I begin my 63^rd year in this world, there are plenty of things to clutter one’s mind. Whether it’s the stress of owning a business, the current political environment (regardless of your view; left, right or independent leaning), preparing for a daughter’s wedding (I sense a blog at some point in the future), the Royals current inability to win baseball games or just getting through the day, a break from the usual can be the perfect tonic.

Queue up the Savannah Bananas!

No, really. Recently, I was invited to see the Savannah Bananas “baseball game” versus the Indianapolis Clowns at Kauffman Stadium. I had heard quite a bit about the routines and the fan following they’ve developed over the past 10 years, but I really didn’t know what to expect.

The “baseball game” began at 3:00pm but the festivities started well before then. We arrived shortly after 2:00pm and the sold-out crowd of 37,000+ was mostly seated by the time we arrived. Dressed in banana yellow T-shirts, jerseys and caps, the fans were literally a sea of yellow. (This is not something we’re used to seeing for Royals or Chiefs games!)

Slowest Baby Race?

Thumping music, fan participation, a pitcher on stilts, and the slowest baby race. Yes, the slowest baby race where parents put their babies on the infield dirt and they “race” to see which one would crawl to their respective parent first. All while an enthusiastic crowd cheers them on. More spectacles included the BBQ pit race (don’t ask.), formerly Major League baseball players, a juggler, a contortionist and so much more.

Perspective

The event definitely provided me with some perspective – sometimes we just need to get out of our own way, sit back and laugh. I am glad I had the opportunity to spend the afternoon living the Savannah Bananas experience and honestly, once is enough for this guy!

It is a good lesson and one I need to be reminded of every so often. Sometimes you need to sit back and laugh. Yes, sometimes you need to sit back and laugh. Sometimes…

If you are in the mood to discuss property taxes, valuations or baseball “entertainment” please reach out!
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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!

When Inventory Matters: Why Investors and Lenders Sometimes Need Independent Verification

June 22, 2026/in General Information/by Gary Stone

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

For many businesses, inventory is one of the largest assets on the balance sheet. Companies rely on inventory records for financial reporting, operational planning, and financing arrangements. Most of the time, those records are accepted without question.

However, there are situations where investors, lenders, or prospective buyers require additional assurance that reported inventory quantities and values are accurate. In those cases, an independent inventory audit or verification can provide valuable insight.

Why Inventory Verification Is Important

Inventory often serves as a critical component in business transactions and financing arrangements. Decisions involving significant amounts of capital may depend on the accuracy of inventory records.

Examples include:

Business acquisitions.
Due diligence reviews.
Asset-based lending arrangements.
Credit facility renewals.
Shareholder or investor reporting requirements.

When inventory represents a significant portion of a company’s assets, independent verification can help reduce uncertainty and identify potential discrepancies before a transaction is completed.

Common Areas of Review

The scope of an inventory audit depends on the objectives of the client, but typically includes:

Observation of physical inventory.
Verification of quantities through sample testing.
Review of inventory records and reports.
Reconciliation of physical counts to accounting records.
Evaluation of inventory valuation methodologies.
Identification of obsolete, slow-moving, or damaged inventory.

The objective is to determine whether inventory records reasonably reflect the assets that actually exist.

Real-World Applications

In one engagement, an investment group requested independent verification of inventory as part of its due diligence process before completing an acquisition. Because inventory represented a meaningful portion of the company’s value, the buyer wanted additional confidence in the reported balances before proceeding with the transaction.

In another case, a financial institution requested verification of inventory that was being used as collateral. The review provided an independent assessment of the inventory supporting the lending relationship.

Although the circumstances were different, both projects shared a common goal: providing decision-makers with reliable information regarding a significant business asset.

The Value of Independent Verification

Typically, variances are due to process issues, timing differences, recordkeeping errors, or inventory management challenges.

An independent review can help identify these issues and provide stakeholders with greater confidence in the information used to support important business decisions.

Whether supporting a lender, investor, or prospective buyer, inventory verification can be a useful tool when significant financial decisions depend on the accuracy of inventory records.

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!

Why Property Tax Appeals for Data Centers Are Becoming One of the Hardest Battles in Commercial Real Estate

June 15, 2026/in General Information/by Eric Owens

By Eric Owens, Director at Swartz and Associates

Data centers have become the backbone of the modern economy — powering AI, cloud computing, autonomous vehicles, and global digital infrastructure. But with that growth has come a new reality: data centers are now among the most aggressively assessed and most frequently overvalued property types in the U.S.

For owners, operators, and investors, this creates a perfect storm: high capital intensity, rapid technological obsolescence, and assessors who often misunderstand what actually drives value.

Here’s why property tax appeals for data centers are uniquely challenging — and why specialized valuation strategy is no longer optional.

1. Assessors Rely on Models That Don’t Fit Data Centers

Most jurisdictions still lean heavily on the cost approach, equating construction cost with market value. But data centers are not warehouses with servers — they are complex ecosystems of short‑life electrical, cooling, and mechanical systems. When assessors fail to separate rapidly depreciating infrastructure from the real estate, values are overstated from day one.

Compounding the issue, many states lack depreciation schedules tailored to data center equipment, leaving assessors to apply industrial‑building assumptions that simply don’t apply.

2. Rapid Technological Obsolescence Drives Accelerated Depreciation

AI‑driven server clusters generate far more heat and require dramatically different cooling and electrical configurations than prior generations. As a result, data centers depreciate 5–10% annually, compared to 2% for typical industrial buildings.

This means a facility can be technologically outdated long before it is physically worn — yet assessments often assume a 40–50 year economic life.

3. Over‑Assessment Is Structural, Not Cyclical

Unlike office or retail, data center over‑assessment doesn’t track market cycles. It stems from how assessments are timed and how infrastructure is treated. Data centers are built in phases.

On the assessment date:

Only certain floors may be revenue‑enabled
Only some power/cooling systems are energized
Large portions of capacity remain intentionally unfinished

Yet assessments frequently treat all shell space and deferred infrastructure as fully contributory, overstating value.

This mismatch between installed vs. revenue‑producing capacity is one of the biggest drivers of appeal‑ready errors.

4. Sales Comparison Is Nearly Impossible to Apply Correctly

True arm’s‑length data center sales are rare — and when they occur, they reflect:

Business value
Personal property
Intangible assets
Enterprise‑level economics

Assessors often misinterpret these transactions as pure real estate indicators, leading to massive overstatements of taxable value.

Without proper allocation, the real estate ends up absorbing value that belongs to equipment or business operations.

5. Land Is Frequently Over‑Valued Due to Misunderstood Site Requirements

Data centers require:

Reliable power
Access to water
Fiber connectivity

These factors increase land value to a data center developer, but not to the broader market. Some assessors mistakenly inflate land assessments based on these specialized needs — a clear inequity compared to other parcels in the same district.

6. Political Dynamics Make Data Centers Easy Targets

Because data centers are often owned by large, non‑local corporations, they face less political resistance than residential or locally owned commercial properties. Assessors know this — and many jurisdictions are leaning harder on data centers to fill revenue gaps.

This means owners must be proactive, not reactive, in defending their assessments.

What This Means for Owners and Operators

The complexity of data center valuation means that traditional appeal strategies fall short. Winning appeals requires:

Separating real property from personal property and business value
Quantifying accelerated depreciation and functional obsolescence
Correcting misapplied cost models
Challenging improper land valuation
Demonstrating what is actually installed and revenue‑producing as of the lien date

Firms that treat data centers like industrial buildings will lose. Firms that understand the economics, phasing, and technology cycles will win.

The Bottom Line

Data centers are the most misunderstood — and most frequently over‑assessed — asset class in commercial real estate today.

For owners, the stakes are enormous: millions in annual tax liability hinge on getting the valuation right.

As data centers continue to scale to meet AI‑driven demand, property tax strategy must scale with them. The jurisdictions aren’t slowing down — and neither should your appeal strategy.

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!

Espressoself: Next Stop, Paris and Bordeaux

June 8, 2026/in General Information/by Keith Sherman

By Keith Sherman, Business Development at Swartz and Associates

Research can certainly be interesting and fun, especially if you’re making the effort to espressoself.

In spring of 2023, my wife and I were in Milan after spending time in Rome, Florence, and Cinque Terre. This is where I discovered, or let’s say tried for the first time, an espresso martini. I was told that the bartender that served us was one of, if not the, best mixologist in all of Milan. Since then, I have been on a quest to find the best espresso martini most everywhere I go… sometimes on weekdays.

Fast forward to our latest adventure a couple of weeks ago. We went to Paris and Bordeaux where we encountered espresso martinis with design and artistry worthy of a fancy coffee drink. In Paris, the bartender assured me he makes the best version. I’ve heard that a number of times, confidence is clearly a part of the recipe. Cue the photos in this blog!

Were these the best of espresso martinis of all time? Hard to say. It’s often a formula that involves the people you are with, where you are geographically, and being open to the variety of ways they are made. I’ve tried this yummy concoction in 42 cities, stateside and internationally and it is pretty fun taking this show on the road. Where have you had your favorite espresso martini?

Whether I’m helping you save money on your commercial property taxes with Swartz + Associates or not, espressoself!

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!

Multi-State Business Personal Property Tax: Why It’s More Complicated Than It Should Be

June 1, 2026/in General Information/by Gary Stone

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

If you operate in more than one state, you know that business personal property tax is not uniform. Every state, and sometimes local jurisdiction, that taxes personal property, has its own laws governing what is taxable and how reported costs are valued. After working with companies across multiple jurisdictions, the challenge is to keep abreast of each state’s statutes and the lack of consistency that exists from county to county.

Same Assets, Different Treatment

One area to consider is that the same asset can be treated completely differently depending on where it is located, for example manufacturing equipment. In one state, it might be fully exempt. In another, it’s taxed but benefits from favorable depreciation. Whereas in other states, manufacturing equipment is fully taxable with a longer economic life.

That creates a situation where companies are not just managing assets. They are managing how those assets are viewed in each jurisdiction.

Valuation Isn’t One-Size-Fits-All

Valuation also varies from state to state. Typically, each state will have prescribed depreciation tables. This helps with providing uniformity for all the assessors to follow within the state. However, the tables will invariably differ with each state. There are some that use a modified version of the MACRS federal income tax depreciation schedule. While other states have an option for the taxpayer to offer a fair market value approach.

Even when tables are provided, how assets are classified can significantly impact the outcome. I’ve seen situations where something as simple as how tooling is categorized can materially affect a tax bill.

Classification Does Make a Difference

As previously stated, the misclassification of assets is an area that can unnecessarily inflate a taxpayer’s liability. I’ve come across questions such as:

Is it real property or leasehold improvements?
Is it exempt or taxable?
Should construction-in-progress be reported?

Those answers vary by jurisdiction and getting them wrong can have a significant impact on your liability.

Deadlines, Filings, and the Administrative Burden

Then there’s the compliance side. It’s not typically where companies run into major issues, but it does require ongoing attention. Each jurisdiction comes with its own deadlines, forms, and reporting expectations.

Across multiple states, this could be a laborious process for a team or person that is already managing a full workload, it’s one more responsibility that needs to be done right and on time. In many cases, the value isn’t just in getting it done, it’s in not having to think about it at all.

Where a Structured Approach Makes a Difference

Companies that handle this well tend to take a more disciplined approach. They centralize their asset data, apply consistent internal logic, and then adjust for state-specific rules where needed.

Just as importantly, they don’t assume that what worked last year, or in another state, will hold up everywhere else.

Why This Matters

Business personal property tax is local by design. But for companies operating across state lines, that local focus creates complexity that’s easy to underestimate.

That is where having someone who understands the nuances can make a difference. My role as a property tax consultant is to help companies navigate those differences; whether that’s improving reporting accuracy, identifying misclassifications, supporting audit defense, or simply taking the compliance burden off your team.

When you’re dealing with a system that isn’t consistent, having a consistent approach on your side matters.

Final Thought

If you’re operating in multiple states and treating business personal property tax as a routine compliance task, there’s a good chance you’re either taking on unnecessary risk or leaving money on the table. It’s probably worth a conversation.

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!

Moving from the Classroom to the Real World of Commercial Property Tax Appeals

May 25, 2026/in General Information/by Pacey Salzman

By Pacey Salzman, Client Research Specialist at Swartz and Associates

Graduating this May feels both exciting and a little surreal. After years of classes, projects, and exams, I am stepping into the next phase of my life with a better understanding of what “real-world” business actually looks like. A big part of that perspective comes from my experience as a Client Research Specialist at Swartz + Associates, Inc. (SAI).

In the classroom, business problems are structured. You’re given clean data, clear assumptions, and a defined path to the answer. That foundation is valuable; it teaches critical thinking and builds technical knowledge. But in my work at SAI, I have learned that real-world business is rarely that straightforward.

Diving into the world of real and personal property tax, I’ve seen just how rarely there is a single, straight forward approach. Deadlines differ by jurisdiction, data can be inconsistent, and answers aren’t always obvious. Instead of solving a clearly defined problem, you’re often gathering information from multiple sources, identifying gaps, and making informed decisions with incomplete data. That level of ambiguity is something you don’t fully experience in a classroom.

That said, my classes have absolutely prepared me for my role with SAI. They gave me the foundation to analyze information, think critically, and manage my time effectively. What’s changed is the context, now the work has real implications beyond a grade.

As I graduate, one thing is clear: education doesn’t stop here. The classroom teaches you the fundamentals, but the workplace teaches you how to apply and adapt them in the real world.

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!

CinemaCon 2026: Meeting New Clients at the Buffet

May 18, 2026/in General Information/by Don Swartz

By Donald Swartz, President

Last month, my blog covered the 2026 Rail Equipment Conference I attended in Palm Springs and the importance/significance of attending and meeting with prospects and clients.

Fast forward one month as I attended CinemaCon 2026, the largest annual conference for theatre owners, vendors and consultants to the theatre industry. This conference typically draws over 3,000 attendees and I always wonder how I can make the “this year’s conference” meaningful and productive.

Sure enough, I was taking advantage of the buffet lunch during the tradeshow and ended up sitting (actually standing at a high top as there were no seats available!) with a group of people. The usual banter took place, “Where are you from? Is this your first conference? What do you do and what is your relationship with the theatres?”

Property Tax Reviews

After explaining our services, one of the individuals asked if we only represented theatre owners or if we handled property tax reviews for other types of commercial property. Hmmm, good question. 😊 He took my business card (big hint for those who think business cards are so yesterday), turned it over and scanned the QR code on the back and forwarded my information on to his boss.

About two weeks later I received an email from said boss, inquiring about our services. This company has three operating locations and a fourth soon to be open. The three current locations are in Des Moines, Minneapolis greater area and Omaha. Three areas we have significant experience as well as appeal success. With looming appeal deadlines approaching at the end of April, we moved very quickly and now have the MN and IA properties under appeal with a review of NE pending by June 30^th.

What is the moral of this story?

Business cards are still worth carrying?
Don’t miss the lunches at a conference?
Don’t talk with your mouth full?
Make the most of attending conferences as you never know where they will lead?

I will let you decide. Thanks for reading!

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!

Results when we appeal property assessments: Percentage of success? Typical savings achieved?

May 11, 2026/in General Information/by David Swartz

By David Swartz, Business Development at Swartz and Associates

We are often asked about our percentage of success and the typical savings achieved when we appeal property assessments – 95% success or better and 10-20% savings. This answer may have kept you interested in reading further, but the better answer is – It depends. Please keep reading.

Our success rate is very high, but we typically only appeal 1/3 of the properties we evaluate. As we go through the appeal process, we may not achieve all the desired results we think are warranted in the first round of hearings, so we will collaborate with the owner about pursuing the case further where a judge or impartial panel will consider more evidence. We rarely lose a case once we choose this path. The evidence and expert testimony can be costly, but these cases usually have a larger misalignment in values resulting in bigger potential tax savings.

We can also leverage the time to negotiate a better settlement with the county and avoid the costly trial. This often results in a very good outcome or a multi-year agreement.

We have a forty-year history to back up our results and every case is unique. This methodology over the years has helped us build our relationships with both our clients and the respective assessors’ offices. Clients recognize if there is property which warrants discussion and appeal, we will pursue this appeal vigorously. Likewise, the county understands if we have filed an appeal, we will have the data to support our basis for the appeal.

Let us know if you have questions about how your property is assessed.

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!