Economic Obsolescence: What Is It and How Can It Help?
Owners with tenants in bankruptcy can preserve some of their investments by seeking a reduction in their property tax assessments. The best way to achieve a reduction is by claiming “economic obsolescence.”
Economic obsolescence occurs when conditions outside the property cause actual losses in the property’s value. Examples include government restrictions, population changes, or economic trends—e.g., a recession. When you go before the court to argue for economic obsolescence, you’ll be asked to prove than an incurable loss in value has occurred, and explain in detail how the conditions caused the loss.
To learn more about economic obsolescence and other options related to tenant bankruptcies, consult your local attorney.