Board Hears Detailed Dispute Over Vacancy, Vacancy Methodology at Switzer’s Locker Room Appeal

Appellants and assessor staff sparred at length over vacancy and expense assumptions for a self‑storage property identified as Switzer’s Locker Room (BOE No. 122). The property representative said actual stabilized vacancy since a 2022 expansion is about 40.87% and that the agent’s income‑based valuation therefore produces a substantially lower market value than the assessor’s income analysis.

The appellant said updated rent‑and‑expense documents produced after the informal hearing led the appellant to raise its asserted value in its pro forma to reflect the property’s actual income and expense profile. “Because of that, we went with the actual vacancy rate,” the appellant said, noting a large expansion in 2022 doubled capacity and the property has not yet leased up the added units.

Assessor staff said office practice is to value based on market measures rather than actuals when appropriate, and that the assessor’s market vacancy ranged from about 10% to 20% in comparable market datasets. The assessor’s analyst said the assessor did an income analysis rather than a sales comp approach for this property and that the assessor’s loaded cap rate produced a higher value than the appellant’s pro forma.

Board members asked detailed questions about the geographic comparability of comps used by each side, the timing of the expansion and whether construction cost data for the added buildings were available. The board and parties agreed the hearing record needed additional documentation on vacancy and any permits or construction costs to resolve differences; the board left the record open and will issue a written decision Friday.