We're excited to announce that we've partnered with Corporate Tax Advisors (CTA) to launch Cost Seg Survey, a revolutionary product that marries the tax benefits of cost segregation studies and the valuable utility of precise 3D/2D documentation.
Starting today, for the first time ever, building owners will be able to underwrite with accurate spatial data (areas and quantities) during due diligence and after acquisition with accelerated depreciation.
Addressing a Major Challenge for Commercial Real Estate Owners
The U.S. commercial real estate market faces a significant challenge: 76% of its 5.9 million buildings were constructed before 1999, according to the U.S. Energy Information Administration. Nearly every one of those buildings has outdated plans and documentation. Talk to any one in and around the maintenance and transaction of these buildings and they'll attest.
While these "unsophisticated" assets are difficult to underwrite accurately. many office buildings will still be handed to new owners in the next couple of years as the market recalibrates to a new reality.
In Q4 of 2023, the office space sector hit an 18.6% vacancy rate, a 30-year high, with Barry Sternlicht, CEO of Starwood Capital Group, noting a loss of over $1.2 trillion in value since the pandemic's onset.
This downturn has spurred new investment strategies, such as SL Green Realty's plan to raise a $1 billion distress fund focusing on New York City and the increasing use of office-to-residential conversions to mitigate housing shortages across the country.
Accurate due diligence and efficient tax benefits should play a crucial role in these strategies.
Precise Data and Tax Savings
Cost Segregation is a vital tax-saving strategy that allows property owners to accelerate depreciation on personal property and land improvements.
Traditionally, executing cost segregation studies and obtaining accurate as-built documentation required hiring multiple vendors, a process often inefficient and prone to inaccuracies.
Cost Seg Surveys enable real estate owners to obtain valuable verified 3D and 2D assets along with a certified cost segregation study for nearly the same price as a traditional study.
This approach accelerates leasing and enhances operational efficiency.
Our collaboration with Corporate Tax Advisors signifies a major advancement. We now capture and verify accurate spaces in 3D and 2D, capturing lost income and drastically cutting time to market with our 'Tenant Ready' assets.
Frank Forte, Chief Investment Officer at Lucern Capital Partners, praises the partnership: "This is a game-changer. We can boost cash flow and help our tenants fit out their spaces faster, crucial in today's competitive market."
A Win-Win for Commercial Real Estate Owners
Cost Seg Survey offers commercial real estate owners a multifaceted advantage from a single on-site visit: a cost segregation study, creation of accurate navigable 3D and 2D models, virtual tours, and more.
Use cases include:
- Leasing: Employ virtual tours of as-builts for marketing and sales.
- Asset Management: Fully understand the details of each asset owned.
- Tenant Build-outs: Provide precise documentation for tenant fit-out planning.
We are just beginning to uncover the potential of accurate building data. Our partnership with CTA broadens the value we offer to numerous real estate owners and operators.
How to get started
1. Sign up for Waitlist: Starting today, the Cost Seg Survey waitlist is open for those interested.
2. Easy Quote and Order Process: In the near future, clients will be able to request a Cost Segregation Survey using the IPX platform. IPX then provides a clear plan and quote to help clients make informed choices.
3. Smooth Approval and Documentation: After getting client approval, a team records details of the property inside and out, setting the stage for a thorough real estate review.
4. Detailed Report Creation: The gathered information is turned into different formats like 3D models and 2D plans. This leads to an in-depth cost segregation study, done with CTA, giving real estate owners valuable insights for tax savings.
A shared mission
The partnership between Integrated Projects and Corporate Tax Advisors is built on a shared mission: to deliver unparalleled value to commercial real estate building owners. Our combined expertise ensures that our clients receive a streamlined, cost-effective service that is unmatched in the industry.
Looking to empower your team with a cost seg survey?