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Board sets Meridian office building at $2.94 million after dispute over lease‑up assumptions
Summary
After debate about vacancy levels, tenant-improvement allowances and lease-up profit, the board adopted a $2,940,500 valuation for the office building at 6525 North Meridian. The property representative sought $2.3 million; the assessor’s models supported a higher figure. The board approved the motion by voice vote.
The Oklahoma County Board of Equalization on Monday adopted a $2,940,500 fair-market valuation for an office building at 6525 North Meridian following a contested appeal focused on vacancy levels and tenant-improvement assumptions.
A representative for the property argued the building is more appropriately valued at about $2.3 million, citing a pro forma using an asking rent of $18.50 per square foot, a lease-up analysis and a $70 per-square-foot tenant-improvement allowance. The representative emphasized that roughly 80% of the building has been vacant for several years and provided pro forma and cash‑flow materials.
"We took the $1,850 multiplied by the rentable square footage ... and then we apply the market vacancy," the property representative told the board, describing the pro forma that underpinned the $2.2–$2.3 million conclusion.
Assessor staff reviewed the same materials and additional county models, earlier sales-comparables and Marshall & Swift cost data, producing a higher valuation in the $3.1 million range. Board discussion concentrated on differences in assumed tenant-improvement costs (the assessor and the appellant referenced $45–$70/sf), the appropriate cap rate and how lease-up and entrepreneurial profit should be handled in a market-value calculation.
Board members and staff recalculated and negotiated the inputs; after discussion the board chair called for a motion to set the value at $2,940,500. The motion was seconded and approved by voice vote.
What happens next: The assessor will record the adopted valuation for account R11478850005. The transcript records no roll-call vote or individual tallies.
