Resilience in real estate: helping commercial property owners stand up for themselves

As inflation costs increase and rising property values lead to higher taxes,
today’s commercial property owners and management companies have to
make every dollar count. Fighting back against unfair property values is a
crucial piece of the puzzle — but knowing who to trust with the work, and
how best to protect your interests, isn’t easy.
Large property tax firms are acquiring smaller operations more and more
frequently, often resulting in rate hikes and shifts in business that do more
harm than good. For property owners or management companies whose
longtime firms do change hands, it’s important to look out for key warning
signs that could spell financial trouble down the line. Let’s take a look at
why these acquisitions are happening and ways you can protect yourself
and your investment.

The Shift Toward Fewer, More Corporate Property Tax Firms
This trend of smaller, locally owned firms selling to big corporations began
in the late 2000s. As property values increased and property taxes
followed, corporations saw the chance to grow their market share. Later, as
mom-andpop property tax firms felt financial pressures from the COVID-19
pandemic, buyouts gained momentum.
Consolidations have become common throughout the U.S., but certain
regions feel the effects more than others. Here in Texas, where there is no
state income tax, property taxes are a substantial source of revenue for
local governments — and a prime opportunity for property tax firms
seeking to expand. Meanwhile, states with elevated property values, such
as New York and California, often have high tax rates that drive demand
for protest services. This makes them attractive to large firms looking to
grow their business by eliminating the competition.

Red Flags to Watch for Following a Merger
What happens if the property tax firm you’ve trusted for years suddenly
switches hands? Property owners who’ve experienced this frequently
mention rate increases and unhappy shifts in business models. And
whether change comes immediately or years down the line, even subtle
shifts can impact business in big ways. Here are some warning signs to
watch for following an acquisition.

Loss of Local Expertise: The most effective property tax protest
firms understand local laws and markets while maintaining established
relationships with county tax authorities. Shifts to more corporate,
centralized operations often lose that specialized knowledge, potentially
impacting your protest outcomes in negative ways.

Diminishing Service Quality: Turnover often increases following
a purchase, potentially pairing property owners with less experienced
Resilience in Real Estate: Helping Commercial account managers who may
not fully understand local nuances. In addition, when cost-cutting
measures reduce staffing, you might experience lower response rates and
poorer protest outcomes as overburdened employees take on too much work.
Contractual or Fee Changes: It’s important to carefully review service
agreements following a purchase. Watch for modifications that reduce
accountability, increase fees or lock you into long-term contracts that could
impact budgets.

Swaying the Odds in Your Favor
Appealing high commercial property taxes can save your business
thousands each year, but protests must be approached the right way. If you
don’t feel your appeal is receiving adequate attention or expertise, it’s
important to stick up for yourself. Here are some tips to help keep appeals
on track.

Be OK with Being the Squeaky Wheel: Has your firm failed to alert you
to upcoming deadlines? Is it unclear where your protest stands? Have
recent bills featured unknown charges? Bring concerns to your firm’s
attention. A trustworthy company should be willing to discuss your issues
and make things right where situations call for it.

Familiarize Yourself with the Protest Process: Understanding a
protest’s steps, deadlines and what’s required to prove a case can help you
pinpoint instances where a firm’s service is lacking. If something doesn’t
seem right, or if you have questions, speak up.

Don’t Be Afraid to Look Elsewhere: Switching firms can be intimidating,
but with so much riding on your protest’s outcome, it’s often worth it. Here
are some factors to consider during your search.

o Are They Local? A firm rooted in your home state will understand
the laws and market conditions behind your property taxes, the
inner workings of your county appraisal district (CAD) and the
best way to approach your case.

o Where Do They Do Business? If you have properties spanning
multiple cities or states, you’ll want a firm that can serve on all
fronts. My firm, for instance, is located in Houston but protests
throughout Texas and into Colorado, Arizona and beyond.

o Do They Have Staying Power? Seek a firm that’s established,
maintains a proven track record and has a solid reputation. Do a
deep dive into their website and online reviews, and consider
asking for references.

It isn’t easy when the company you’ve always trusted to protest your unfair
property tax protests changes hands, but it isn’t the end of the world. By
staying vigilant and strategic — and being willing to stand up for yourself.