Archive for category: General Information

By Keith Sherman, Business Development at Swartz and Associates

One of the big topics in business that shines bright today is the conversation around transactions vs. relationships. When it comes to business development, people often compare it to farming or hunting, but I’d like to add fishing to the mix. Fishing better describes the experience I’ve had over the past 24 months with Swartz + Associates, and here’s why:

The First Challenge

The first challenge was learning an entirely new business ecosystem. I spent almost four decades in marketing and advertising, so business development is nothing new to me. But the people I need to engage with today are focused on saving money on their taxes.

Swartz + Associates is a full‑service commercial property tax firm specializing in the review, analysis, and appeal of real and business personal property tax valuations. Simply put, we ensure companies are paying their fair share. Think commercial brokers, investors, tax professionals, developers, M&A attorneys, title attorneys, CPAs, wealth managers, banks, and property owners.

The Second Challenge

Secondly, while I’ll never claim to be a tax analyst or have deep technical knowledge in this field, it’s imperative to learn how to find the decision‑makers within this discipline – the professionals and organizations that touch taxes every day.

What we do is a niche service within finance, and you have to know where to look.

The Third Challenge

Lastly, many prospects already have a company handling this work for them, and often those relationships run deep. But even in long‑standing partnerships, people are open to learning about new resources, fresh perspectives, and additional ways to strengthen their tax strategy.

When someone introduces us, it’s usually because they want to make sure their clients or colleagues have every advantage available, not because something has gone wrong. Referrals and trusted relationships create opportunities to show how we can add value, complement existing efforts, and make a meaningful difference in a prospect’s business.

The Fishing Trip

All of this came together on a recent week‑long business trip in my beloved Arkansas. As a lifelong fiSherman (see what I did there? My last name is Sherman…) the week ended in Hot Springs to fish for walleye on Lake Ouachita with one of my lifelong friends, Joe Pohlkamp. We hired a guide and caught our limit in about four hours, plus several bass and catfish. Side note: I caught a 42‑pound striper the last time I used a guide on that same lake.

The growth and success of my business efforts so far are rooted in relationships that have guided me in the marketplace. Hathaway Group in Little Rock and Encore Bank in Arkansas and Texas have been my fishing guides. I’ve always been able to catch fish, but if you want to find bigger ones, having a guide makes all the difference.

Knowing where the fish are creates a more intentional effort over time and reinforces the value of true business relationships over transactional ones.

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 Katy True, Operations Manager at Swartz and Associates

I walked into my first CREW KC event not really knowing what to expect – and walked out having already decided to join.

It was April, and Jamie Buckley, our banker at Enterprise Bank & Trust, invited me to a quarterly luncheon for CREW KC (Commercial Real Estate for Women in Kansas City). The room was buzzing – energetic, welcoming, full of women who genuinely seemed glad to be there. I signed up shortly after.

Why It Fit

CREW’s whole approach mirrors how we work at Swartz & Associates: relationship-driven, community-minded, built on collaboration across commercial real estate. We work alongside property owners, tax professionals, and CRE teams every day, so joining a network that brings those same voices together didn’t feel like a stretch, it felt like showing up to a conversation we were already part of.

A Small Gesture That Made a Big Difference

What struck me first was how deliberately CREW helps new members settle in. Their membership team pairs every newcomer with a current member for a welcome lunch – simple on paper, but genuinely thoughtful in practice.

Mine was with Jessica Miller. Over lunch she talked about why she joined, what’s kept her involved, and a little about her career and family along the way. Nothing fancy, just a real conversation. But having one familiar face in the group makes future events feel a lot less intimidating to walk into.

Coffee, Conversation, and a Little Less Nerves

A few weeks later, I joined a small coffee meetup at Pitchside Coffee Shop with Tiffany Osborn, Katie Pohlman, and Stephanie Lankford. Three of us were brand new; Katie, a member for several years, brought some great perspective to the table.

Small groups like that make it easy. We ended up talking careers, how we each landed where we are, even our families. It felt natural, even for the introverts in the bunch (myself included!)

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 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

* 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!

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!
| 

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 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!