Property types
Retail acquisitions and property tax.
Real-property allocation, reassessment risk, and where the exposure actually is
Retail carve-out math is straightforward: single-tenant NNN defaults to 100% real property, multi-tenant to 99%, mall-anchored to 98%: small allowances for the rare case where a sale bundles minor tenant improvements or FF&E, not a meaningful going-concern strip. Unlike a hotel, a shopping center doesn’t sell with a business attached; it sells as a building with leases in place.
The bigger diligence question for retail is the jurisdiction’s own reset mechanic (does this sale actually trigger a step-up, and on what timeline), plus one thing worth checking specifically for retail: many big-box and mixed-use retail redevelopment sites sit inside a Tax Increment Financing (TIF) district, since retail redevelopment is a common TIF use case.
Worth checking
Rolling Basis flags active Texas TIRZ zones by county for Texas properties (see the TIF guide for how this works and its limits: it’s a county-level flag, not a parcel-precise match). Elsewhere, ask the seller or local taxing authority directly whether the site sits in a TIF or similar redevelopment district.
Other property types