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Assessor and owner differ on valuation of large Oklahoma County commercial property
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Summary
A commercial-property appellant presented a refinancing appraisal of $7.5 million; county appraisers questioned elements of that appraisal and proposed an assessor-side valuation of about $8.275–8.3 million after accounting for lease-up and roof-replacement uncertainties. The board will issue a decision after a Friday meeting.
A commercial-property valuation dispute occupied a large portion of the Oklahoma County Board of Equalization meeting as the owner's representative and assessor staff debated competing appraisals and the effect of tenant departures and roof condition on value.
The owner's representative presented a June appraisal produced for refinancing that set value at $7.5 million. He said two tenants — Providence Realty and Game Time — vacated after that appraisal, removing roughly $378,000 in annual revenue from the rent roll. The representative also raised roof condition and replacement-cost uncertainty as factors that could reduce value.
Assessor staff reviewed the appraisal and identified gaps in the report's income and expense assumptions, including management-fee levels, the presence or absence of triple-net terms, secondary income and vacancy assumptions, and adjustments for much larger land parcels and building quality. Senior appraiser Tom Shannon told the board he would use a $7.95 market rent assumption, different secondary-income assumptions and small expense adjustments; after accounting for lease-up assumptions and an allowance for additional property management expense he said an assessor-side valuation near $8.275 million (rounded to approximately $8.3 million) would be supportable.
Board members pressed the parties on square footage assigned to departed tenants (about 30,000 square feet combined by the assessor's accounting), the scope and cost of roof replacement (owner provided a contractor bid as context but no hard final cost), and whether the appraisal's restricted-use language limited its comparability. The assessor's office said it would accept new information about tenant apportionment and lease-up to refine numbers before the board meets on Friday.
No final valuation was announced; the board said it will meet Friday to make its determination and will notify parties by mail.
