A recent survey reveals that nationally, Atlanta is the fourth-most targeted city for commercial real estate investment. This continued growth creates a paradoxical challenge for property owners: Rising property values and investor interest drive up tax assessments across the metro area.
With CoStar’s help, we found that Q1 2025 sales volume for office buildings outpaced first quarter sales for the past two years, and vacancy rates sit around 18%, 0.9% lower than last year. On the retail side, rents hit a new high of over $23/SF, rising 4.4% in the past year, while Atlanta’s multi-family vacancy rate remains relatively high and flat at 12.1%.
With this market, the commercial real estate tax burden has become a critical factor in portfolio performance.
For sophisticated CRE owners, the Georgia property tax appeal process offers more than immediate relief — it provides a strategic tool for long-term asset optimization through the powerful 299c freeze provision.
Understanding Commercial Property Tax Assessments in Georgia
Georgia's commercial property tax system operates on fundamentally different principles than many states.
All commercial properties are assessed at 40% of their fair market value, creating a standardized baseline across property types.
However, the methodology for determining fair market value varies significantly between office buildings, retail centers, industrial facilities, and mixed-use developments.
The Assessment Process for Commercial Properties
Each County Board of Tax Assessors employs mass commercial appraisal techniques that often fail to capture the nuances of commercial real estate:
Income Approach Limitations: Assessors frequently use outdated cap rates and market rent assumptions that don't reflect current market conditions
Comparable Sales Challenges: This method examines recently sold properties and compares their selling prices to determine value, but faces issues related to data availability and accuracy of comparable sales.
Cost Approach Discrepancies: Replacement cost calculations often ignore functional obsolescence and reproduction costs, particularly relevant for older or unique properties
Critical Assessment Dates and Deadlines
Commercial property owners receive assessment notices between April and June, triggering a strict 45-day appeal window. For instance, if your notice of value was sent on June 1, 2025, you have until July 16 to file an appeal.
Missing this deadline forfeits your appeal rights for the entire tax year, a costly mistake when dealing with properties valued in the millions.
The Strategic Value of the 299c Freeze for Commercial Properties
Georgia Statute 48-5-299(c) represents one of the most powerful tax planning tools for commercial property owners.
The “299c freeze” is a property tax provision that locks your property's assessed value for three years when you successfully appeal your assessment and achieve a reduction (or even maintain the same value) at the Board of Equalization (BOE) level or higher.
Calculating the 299c Impact on Commercial Properties
Consider a typical Atlanta office building scenario:
Pre-Appeal Assessment:
Fair Market Value: $12,500,000
Assessed Value (40%): $5,000,000
Tax Bill (at 30 mills): $150,000
Post-Appeal with 10% Reduction:
New Fair Market Value: $11,250,000
New Assessed Value: $4,500,000
Annual Tax Bill: $135,000
Three-Year Savings: $45,000*
*Assumes no significant market decline or cap rate reductions, which could lead to reappealing and breaking your freeze.
Advanced Appeal Strategies for Commercial Properties
Income-Based Valuation Arguments
With Atlanta's office vacancy at historic highs and varying performance across submarkets, income-based appeals have become increasingly compelling. Below are four income-based appeal techniques for more successful appeals:
Document Actual Income vs. Assessor Projections: Demonstrate how actual NOI falls below county assumptions
Market Rent Analysis: Show how asking rents in your submarket differ from assessor estimates
Occupancy Reality Check: Present actual occupancy versus the assessor's stabilized assumptions
Operating Expense Documentation: Highlight increased costs that assessors often underestimate
Market Condition Arguments
Current Atlanta market data provides powerful ammunition for appeals:
Office: In the past year, vacancy rates have been 16.7%, well above the national average. Class A properties have the highest vacancy rate, at 24.8%.
Multi-Family: For the past three years, new supply has outpaced net absorption in Atlanta, causing vacancy rates to rise from around 6% in 2021 to the current rate of 12.1%.
Retail: Atlanta's annual retail rent growth is currently at 4.4%, below the 10-year average of 4.2%. However, it is more than double the national average of 1.7%.
Hospitality: The Atlanta market’s occupancy has not recovered to pre-pandemic levels of roughly 70%, while RevPAR is still modest at an expected 2% increase in 2025.
Industrial: Vacancy has risen to 8.4%, well above the 10-year average of 5.8%. Annual industrial rent growth in Atlanta is at 4.1%, and while relatively strong, QoQ growth shifted significantly from 2.4% in 2024 to 0.4%.
Physical Condition and Functional Obsolescence
Properties competing against newer developments can argue functional obsolescence:
Outdated HVAC systems impacting energy efficiency
Lack of modern amenities expected by today's tenants
Parking ratios below current market standards
Floor plate inefficiencies compared to new construction
Litigation Options for High-Value Properties
For non-homestead or commercial properties valued at $500,000 or more, Georgia law provides enhanced appeal rights that residential properties don't receive:
Superior Court Appeals
Commercial property owners can appeal directly to the Superior Court if dissatisfied with the Hearing Officer. This option becomes particularly attractive when:
The property value exceeds $1 million
Complex valuation issues require expert testimony
Precedent-setting issues affect multiple properties
Arbitration Alternative
Georgia offers binding arbitration as an alternative to BOE hearings for qualifying commercial properties. Benefits include:
Selection of arbitrators with commercial real estate expertise
More flexible evidence rules
Confidential proceedings
Faster resolution timelines
Timing Your Appeal in Current Market Conditions
With 70% of Atlanta CRE investors planning acquisitions in 2025 and Atlanta maintaining its top-tier investment status, the timing of tax appeals requires strategic consideration:
When to Maintain Your Freeze
Keep your existing 299c freeze if:
Your frozen value is generally 20% or more below current market assessments
You're in high-growth submarkets like Midtown or Buckhead
Recent comparable sales support continued appreciation
You plan to hold the property beyond 2027
When to Reappeal and Break the Freeze
Consider appealing a frozen value when:
Market fundamentals have shifted dramatically (e.g., office-to-residential conversions in your submarket)
Your property's actual income has declined 25% or more
Major tenants have vacated without replacement, heavily decreasing your NOI
Competing properties have achieved significant assessment reductions
Common Pitfalls in Commercial Property Appeals
1. Inadequate Documentation
Commercial appeals require comprehensive evidence packages:
Three years of actual income and expense statements
Current rent rolls with lease terms
Market studies from recognized CRE firms
Engineering reports documenting deferred maintenance
Environmental assessments affecting value
2. Inconsistent Valuation Approaches
Ensure your appeal arguments align across all valuation methods. Contradictory positions between income, sales, and cost approaches undermine credibility.
3. Failure to Preserve Appellate Rights
Missing deadlines or procedural requirements at the BOE level can result in forfeiture of Superior Court appeal rights, which can be devastating for high-value properties.
The Bottom Line: Maximizing NOI Through Strategic Tax Management
In Atlanta's dynamic commercial real estate market, property taxes represent one of the few controllable operating expenses. With office properties facing headwinds, industrial rents at historic highs, and retail adapting to new realities, strategic tax appeals have never been more critical.
The 299c freeze transforms a successful appeal from a one-year benefit into a three-year strategic advantage. For institutional owners and sophisticated investors, this represents genuine NOI enhancement that directly impacts asset value and investment returns.
Don't leave money on the table.
With assessments already arriving or hitting mailboxes soon, now is the time to evaluate your portfolio's tax appeal opportunities.
Take Action with Ownwell
Ownwell brings institutional-quality tax appeal services to Georgia commercial property owners. Our team combines local market expertise with proprietary technology to maximize your assessment reductions and secure valuable 299c property tax freezes.
Why Ownwell for Commercial Properties:
Specialized CRE valuation experts
No upfront costs; we only get paid when you save
Seamless handling of the entire appeal process
Get started today and discover how much you could save on your commercial property taxes.
Our team will analyze your current assessments, identify reduction opportunities, and manage every aspect of your appeals to secure maximum savings and long-term value protection through the 299c freeze.
