Property tax assessments are one of the largest operating expenses in commercial real estate, yet they are often reviewed only briefly when notices arrive. Across the U.S., appeal deadlines for prior-year assessments typically occur in the first half of the year, making this a critical time for owners and occupiers to determine whether their property taxes reflect current market value.

While deadlines and procedures vary by state and county, the principle is consistent nationwide: property taxes are calculated based on assessed value. If that value exceeds fair market value, businesses may be overpaying. Savills supports commercial tax appeals in all 50 states, as well as Canada and the U.K., helping clients navigate local requirements within a coordinated framework.

What is a commercial real estate tax appeal?

A commercial real estate tax appeal is the formal process of challenging a property’s assessed value. It is not about disputing tax rates; it is about ensuring the valuation used to calculate taxes reflects market conditions.

When assessments outpace market reality, the result can be years of unnecessary overpayment. In many cases, a successful appeal uncovers what clients consider “found money.” Importantly, in most jurisdictions, filing an appeal does not increase a property’s assessment simply because it was challenged. If market data does not support a reduction, that can typically be determined upfront and no action is recommended.

Tax appeals may benefit:

• Property owners whose assessments exceed market value
• Single-tenant occupiers, particularly in net lease structures
• Tenants in buildings that have sold below assessed value

Recent sale prices, rising vacancies, declining rents, or reduced net operating income can all signal opportunity.

Why market knowledge matters

Market conditions have shifted across several asset classes, particularly office. Assessments, however, may lag behind real-time changes in leasing velocity, capitalization rates, investor demand, and occupancy trends.

Savills’ tax appeal professionals work closely with brokerage teams negotiating transactions, allowing assessments to be evaluated against current deal data rather than historical benchmarks alone. In evolving markets, that distinction can materially impact outcomes. In 2025 alone, Savills’ tax appeal efforts generated approximately $4.9 million in client savings.

What does the process look like?

Although procedures differ by jurisdiction, most appeals follow a similar structure:

• Assessment review – Comparing assessed value to current market data and transactions
• Appeal filing – Submitting documentation within statutory deadlines
• Evidence support – Presenting income analysis or comparable sales
• Resolution – Negotiation or hearing before an assessor or review board

Savills operates on a success-based fee structure, meaning compensation is tied directly to achieving a reduction.

Why timing matters

Assessment years and tax payable years often do not align, and appeal windows are tied to assessment notices — not when tax bills arrive. By the time owners review their tax bills, the opportunity to challenge the valuation may be limited or expired.

Commercial real estate tax appeals are not about being aggressive; they are about accuracy. In a shifting market, ensuring assessments reflect current realities can unlock meaningful savings and reduce long-term occupancy costs. Whether managing a single asset or a national portfolio, understanding when and how to act is essential to smart real estate strategy.

One point of contact, portfolio-wide

For clients with multi-market portfolios, centralized tax appeal management provides consistency and efficiency. Rather than coordinating with multiple local firms, Savills offers a single point of contact while leveraging local market expertise nationwide.