Seven-Bay Retail Strip
$2,400,000
$1,119,681
$1,119,681
The property
A seven-bay retail strip center with multiple tenant buildouts, specialty retail finishes, restaurant and salon equipment connections, paved parking, sidewalks, site lighting, landscaping, and a rear bioswale.
The study
Our engineers reviewed the tenant spaces and exterior improvements to identify assets eligible for accelerated depreciation. Key components included specialty flooring and finishes, dedicated electrical, plumbing, and HVAC connections, restaurant improvements, parking and concrete work, landscaping, site lighting, and the bioswale.
The result
Approximately $1.12 million was reclassified into 5- and 15-year property. The result moved nearly 47% of the depreciable basis into shorter recovery periods, generating a substantial first-year depreciation benefit through 100% bonus depreciation.