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Owner disputes Fashion Square valuation; board sides with assessor
Summary
Fashion Square Assets told the board its mall property is over-assessed given persistent vacancy and weak leasing prospects; the assessor relied on a cost approach and sales-comparison data and the board affirmed the 2026 assessment after questioning lease assumptions.
A representative for Fashion Square Assets told the board the mall’s assessed value had risen to its highest recorded level despite prolonged vacancy in much of the building and limited retail prospect for the remainder.
The petitioner presented a lease‑fee income exercise and argued for a midpoint between the current 2026 assessment and prior years’ lower assessments. The assessor said the property incorporates both county-occupied office/forensics space (improvements funded by the tenant) and a large vacant former department-store footprint, and therefore relied principally on a cost approach and sales-comparison adjustments for the district.
The assessor also ran a hypothetical income pro forma (illustrating how tenant-improvement costs and vacancy factor into value). Board members questioned whether the county tenant’s outlay for build‑outs should be imputed to rent and how long-term vacancy and tenant mix affect market value. After discussion the board voted to affirm the assessor’s 2026 assessment, noting uncertainty about stabilized leasing but finding assessor methodology reasonable for today's valuation.
The board invited the owner and assessor to exchange additional leasing and lease-up evidence if the owner seeks re-review in a future year.
