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Retail Revival or Reckoning? Taxing the Evolution of Florida’s Shopping Centers
Retail in Florida is far from dead, it’s evolving. Neighborhood centers are transforming into mixed-use lifestyle hubs, incorporating residential and recreational spaces to attract a market. Big box spaces are being converted or subdivided. Tenants are renegotiating lease terms and landlords are getting creative. But not all retail developments can or will be transformed and their valuations should not assume that they will.
The world of retail is adapting and growing, but property tax assessments? They don’t always reflect the reality of the property as of the date of value.
Aggressive Valuation Models
Many times valuations are based on:
- Aggressive assumptions rather than the reality of operations
- Forecasts of future redevelopment
- Ignore the costs of tenant improvements and concessions
- Assumed cap rates that are not in-line with reality as of the date of value
That leads to:
- Overvaluation of properties, especially when there is potential to redevelop or re-tenant
- Mismatched comparables. Both rent comps and sale comps
- Inflated income approach valuations resulting in higher property tax burdens
A Retail Appeal Strategy
Success in appealing retail assessments comes from showing the true income potential and risk profile of the assets, especially in volatile submarkets.
At FirstPointe, we help retail property owners provide the comps, lease data, and market trends that often reverse improper assumptions.
Because in 2025, “location, location, location” isn’t enough—it’s valuation, valuation, valuation.
Contact us for today for help on your property tax needs!
954.546.9630
6301 NW 5th Way
Suite 2800
Fort Lauderdale,
FL 33309
