RET Appeals First: How Early Diligence Protects Property Value
When OPEX CRE begins a receivership or property management assignment, real estate tax review is one of the first areas we evaluate. The reason is straightforward: outdated or unsupported assessments can create unnecessary expenses, reduce net operating income and erode an asset’s value.
Recent appeal victories across three OPEX-managed assets have produced more than $4.45 million in documented savings and refunds, supported by approximately $266 million in cumulative assessed-value reductions.
These results demonstrate why real estate tax appeals should be at the top of the diligence list from the beginning of every assignment.
Why Timing Matters
Real estate taxes are often one of a property’s largest operating expenses. However, assessed values may not reflect current market conditions, occupancy challenges, declining income, deferred maintenance or other issues affecting an asset’s actual value.
If those assessments are not reviewed quickly, ownership may continue paying taxes based on assumptions that no longer match the property’s performance or market position.
Appeal deadlines can also be strict. Waiting too long may mean losing the opportunity to challenge an assessment for the current tax year. An early review gives the property team time to analyze the assessment, gather supporting documentation and pursue the appropriate appeal strategy.
OPEX CRE Diligence in Action
OPEX approaches real estate tax, or RET, review as part of the broader operating strategy for each property. We examine existing assessments, historical tax information, current property performance and relevant market conditions to identify potential discrepancies and savings opportunities.
That diligence has produced measurable results across several property types and major markets.
Washington, DC
Class A Office
$26.5MM Reduction
$136K Refunded
Philadelphia, PA
Regional Mall
$188.7MM Reduction
$967K Savings Identified
Chicago, IL
Class A Office
$50.9MM Reduction
$3.35MM Annual Savings
Every Dollar Preserved Strengthens NOI
Real estate tax savings have an immediate operational impact. Unlike a one-time capital improvement or long-term leasing initiative, a successful appeal can directly reduce a property’s ongoing expenses.
Every dollar removed from the tax bill flows directly to NOI. That improved performance can strengthen cash flow, support valuation and help position the property for its next phase, whether the objective is stabilization, refinancing or an eventual sale.
At OPEX CRE, we combine property-level intelligence, experienced operators and disciplined execution to uncover opportunities that may otherwise be overlooked. Real estate tax review is one more way that diligence translates into measurable performance.
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