Commercial Real Estate
The commercial appraisal department is responsible for placing actual fair cash value on properties used for business purposes. The department also estimates actual fair cash value on vacant land that is zoned for commercial usage. Examples of commercial property are retail stores, office buildings, shopping centers, etc. There are commercial properties that have "special uses", such as golf courses, hospitals, and nursing homes. Warehouses and manufacturing facilities are industrial properties.
The properties are required by Oklahoma law to be inspected on a four year cycle. An inspection calls for all building features, components, and characteristics to be identified, measured and listed. Examples would be the size of the building, occupancy, age, paving, fencing, pools, tennis courts, elevators, canopies, etc.
Commercial property value is estimated by using all three approaches to value: cost and market analysis. Sometimes one approach is more appropriate to use than the others.
The market approach is the method where sales of similar properties are reviewed and compared to the subject. The sales used are "arms length transactions", where the buyer and seller both acted without undue pressure.
Another method is to calculate what it would cost, using today’s labor and material prices, to replace the structure with a similar one. If the structure is not new, the appraiser determines how much it has depreciated since it was built. The resulting value is then added to the estimated actual fair cash value of the land. This method is the cost approach.
All the information is entered on field cards and computer. Computer Assisted Mass Appraisal (CAMA) techniques are used to analyze sales and estimate values for many properties at once.
Due to recent legislation, a 5% cap (Taxable Fair Cash Value) is placed on property value increases after a revaluation. However, if the title to the property is transferred, changed, or conveyed to another person, the cap limit is removed and the property value goes to full actual fair cash value.
If a property has newly constructed improvements, those items are placed on the tax roll at full actual fair cash value. Previously existing improvements on the same property are subject to the 5% cap increase limitation unless the title is transferred, etc.