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Board sets commercial property value at $2.94 million after negotiation over TI and lease‑up assumptions
Summary
After detailed presentations and debate over tenant improvement (TI) allowances, lease‑up costs and comparable sales, the Oklahoma County Board of Equalization approved a value of $2,940,500 for a largely vacant office building at 6525 North Meridian (BOE #156). Parties had advocated values ranging from $2.2 million to $3.13 million before the agreement.
The Oklahoma County Board of Equalization voted on June 1 to set the assessed value of a commercial office building at 6525 North Meridian (BOE #156) at $2,940,500 following a technical exchange between the property representative and assessor staff.
The owner’s representative presented a multi‑page pro forma and lease‑up analysis showing roughly 80% vacancy, a negative net operating income for 2025, and a market‑based stabilized approach that produced a $2.2 million figure which the representative rounded to $2.3 million. The counsel for the owner said the client continued to incur carrying costs and provided documentation supporting negative operating performance.
Assessor staff reviewed the pro forma and questioned a 20% entrepreneurial profit on the lease‑up calculation, the use of a $70 per‑square‑foot tenant improvement (TI) allowance provided by the owner, and other assumptions. The assessor ran alternate lease‑up scenarios using $45–$55 TI allowances and consulted Marshall & Swift cost data and local comparable sales. The assessor reported valuations near $3.1 million on a sales‑comparison and income approach.
After board members and parties debated TI and vacancy assumptions, the parties converged on a compromise figure. Chair Elanor Thompson entertained a motion to set the value at $2,940,500; the motion was seconded and approved by voice vote.
