In a recent legal case brought before the Commonwealth Court of Pennsylvania, the board decided certain Guardian Self Storage facilities were correctly valued for real estate tax purposes based on actual financial results from the property. The trial court found the properties were optimally managed and a buyer could not reasonably expect to improve the financial performance.
In the case of Guardian Self Storage WD v. Board of Property Assessment Appeals & Review, No. 119 C.D. 2009, the court held that the facility’s actual performance is what a buyer in the marketplace could expect. The Commonwealth Court rejected the claim that the value amounted to a value-in-use and said it was instead a value-in-exchange.
Source: Mondaq News Alerts, United States: Self-Storage Facilities Correctly Valued