In a recent Assessment Appeals Board meeting held on July 21, 2025, in Tulare County, significant discussions centered around the valuation of a new Amazon facility located in the Visalia Industrial Park. The property, which spans 71.74 acres and features a substantial 1,136,882 square-foot warehouse, has been under scrutiny regarding its assessed value.

The applicant, representing Amazon, presented a detailed income approach to valuation, asserting that the property should be valued at approximately $134 million. This figure contrasts sharply with the current assessed value of $183 million. The applicant based their valuation on actual rental income from Amazon, which is reported at $7,020,000 annually, and applied a cap rate of 4.75% to arrive at their conclusion. They also factored in a market vacancy rate of 5.7% and minimal operating expenses due to the nature of the triple net lease, where the tenant covers most costs.

In addition to the income approach, the applicant provided a sales comparison analysis, referencing four comparable properties. This analysis indicated that the assessed value of the Amazon facility is higher than similar properties, further supporting their claim for a reduced valuation.

The meeting highlighted the complexities involved in assessing large commercial properties, particularly those with unique characteristics like Amazon's facility. The board is tasked with considering these various valuation methods to determine a fair market value that reflects the current economic conditions and property specifics.

As the board deliberates on this appeal, the outcome will have significant implications not only for Amazon but also for local tax revenues and the broader economic landscape in Tulare County. The decision is expected to be announced in the coming weeks, as the board weighs the evidence presented by both the applicant and the county assessor's office.