Commercial and industrial property is assessed at 40% of appraised value in Tennessee — a higher ratio than the 25% on homes — so an over-appraisal hits commercial owners harder.
How commercial value is judged
Assessors and boards weigh three approaches:
- Income — what the property earns (rents, occupancy, expenses, cap rate). Often the most persuasive for income-producing property.
- Sales comparison — recent sales of similar commercial property.
- Cost — replacement cost less depreciation.
Building a commercial appeal
- Assemble a current rent roll and operating statements.
- Document vacancy, deferred maintenance, or below-market leases that depress value.
- Pull comparable commercial sales and prevailing cap rates.
Why representation matters
Commercial appeals are evidence-heavy and the dollars are larger, so the analysis has to be tight. TN.tax prepares the full packet and presents it to the board on your behalf.
This is general information, not legal or tax advice.