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Board splits difference on 1310 Airport Road flex building after debate over depreciation method
Summary
An owner's representative argued that the county understated depreciation for a 62,312-square-foot flex/industrial building at 1310 Airport Road; the county pointed to recent tenant improvements and a major tenant lease when defending a lower-depreciation cost-based value. The board settled on an intermediate assessed value.
Union County's hearing board considered an appeal from the owner of a 62,312-square-foot flex/industrial building on Airport Road who argued that the county's cost approach used an insufficient depreciation allowance and therefore overstated building value.
Why it matters: Depreciation rates in cost-based appraisals materially affect assessed values for older industrial or flex buildings; for owners and lenders the chosen depreciation schedule can change assessed value by hundreds of thousands of dollars.
What the owner said: The owner's representative presented email analysis from SC Hondros and Associates and argued the county used a 34% depreciation figure while independent technical guidance suggested an effective depreciation in the 60% to 75% range for similar older tilt-wall and multi-section industrial buildings. Using an intermediate 50% depreciation the owner's representative produced a lower building value and a total combined parcel value near $5,000,000.
County response: County staff said the subject property had significant permitted improvements and an active long-term tenant (Collins Aerospace) that had completed interior improvements to roughly 20,000 square feet and added HVAC systems; the county said those renovations reduce the effective depreciation and supported a lower overall percentage (34%). Using Marshall & Swift cost tables and recent sales, county staff reported a combined value of about $5,435,300.
Board ruling: After hearing both sides, the board voted to adopt an intermediate assessment, effectively splitting the difference between the parties' positions. The board-set assessed value for the combined parcel (city and county split portions) was recorded in the board's action as $5,275,700.
Ending: The case illustrates how permitted tenant improvements and occupancy can counteract functional obsolescence in older industrial buildings, and how boards often weigh technical depreciation advice against evidence of recent capital expenditures and leasing activity.
