Property types

Office acquisitions and property tax.

Real-property allocation, reassessment risk, and where the exposure actually is

Office is one of the simplest asset classes for a real-property allocation: a traditional office building carries essentially no FF&E or business value to strip out of the sale price. Rolling Basis’s default allocation is 99% real property for traditional office, 90% for flex/coworking space (a placeholder estimate, given the shared-space business-value question that format raises). The purchase price is, with minor exceptions, a price for the building.

That means the real underwriting question for an office deal isn’t “how much of the price is real property”. It’s whether the jurisdiction resets assessed value to the sale price at all, and if so, under what mechanic. States vary enormously here: some reset to the transaction price immediately (a real step-up to budget for), others decouple assessed value from price entirely (market-drift or capped-formula states), and others reset on a fixed cycle regardless of sale. Running the actual address is the only way to know which applies.