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The Raub Blog

Flip Side of The “Dark Store” Tax Loophole

by irc16350 on February 24, 2017

The state tax code prevision more commonly known as “dark store theory” allows any business, of any size to “have its real estate assets qualified as vacant so that its appraised value won’t be linked to the business’s profit.”. Rahul Patel, local lawyer and managing partner at Patel | Gaines, flips the recent media portrayal of retailers attacking local communities via “dark store theory” by proposing the idea that in the long run continuing to tax vacant retailers at full “highest and best use value” might actually hurt the community more than they realize. The idea is that unlike residential property, commercial property has no tax cap, they are valued on their potential to be successful instead of on their raw value, substantial increases in property value and taxes which owners have not accounted for must be paid nonetheless. This in turn takes money away from capital allocated for renovation, maintenance, and structural issues, the higher tax values also deter tenants away, resulting in lost income for the owner, and create a problem in attracting new tenants. Patel notes how increased property taxes are starting to become a concern for developers as well.

Chat with a lawyer: The flip side of the “dark store” tax loophole


President Trump has called for tax code revisions in an effort to better the economy. In a meeting with the heads of major retailers such as Best Buy (BBY.N), Target (TGT.N), Autozone (AZO.N), Walgreen’s (WBA.O), JC Penny (JCP.N), JoAnne and Tractor Supply Co. (TSCO.O) the group of retailers discussed their opposition to the border tax on imported goods, which has U.S companies on opposing sides and could very well lead to the dismissal of the border tax. Large exporters such as Boeing (BA.N), General Electric Co. (GE.N), and Pfizer (PFE.N) have banned together to support the import tax. In addition, the groups also met with tax-writing congressional committee leaders to discuss tax reforms.

Trump meets with retail CEOs to talk taxes, imports


2.76 Acres Becomes Available at The Pearl

February 17, 2017

Tweet With Samuels Glass Company moving to Loop 410, the 70,000 square foot facility and neighboring metal shop becomes vacant at the Pearl. Silver Ventures, the Pearl Developer, now has 2.76 acres to brainstorm new ideas for the next wave of development. Bill Shown, the Managing Director of Real Estate for Silver Ventures, advised there […]

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H-E-B contributes $1 million to South San Antonio Park Development

February 15, 2017

Tweet H-E-B has donated $1 million to the construction of South San Antonio’s Confluence Park. The donation will be distributed as part of a 5-year grant. The Confluence Park will be heading towards completion in 10 months, with the help of the donation. San Antonio River Authority has raised more than $10 million for the […]

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La Cantera’s Tenant Roster Gains Another Women’s Retailer

February 9, 2017

Tweet Jill, a Massachusetts-based retailer will be making a new home in San Antonio La Cantera Center. Construction will start June 2017 and be completed by August 2017. The retail tenant improvements are estimated to cost about $315,000. La Cantera has remained an upscale shopping destination in San Antonio since 2005. With, a roster of […]

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How the ‘Trump Bump’ Affects Real Estate

February 8, 2017

Tweet The Dow Jones has reached 20,000 and reached the milestone in the fastest 1,000-point jump in history. This event is indicative of a few real estate developments moving forward into the new year. President Trump’s promise to bring back manufacturing jobs and plants back to the country, as well as his corporate tax and […]

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Trump’s Order For The Renegotiation of NAFTA

February 7, 2017

Tweet President Trump has signed an executive order for the renegotiation of NAFTA, this has met its goal of increasing each prospective country competitiveness in the global marketplace, but had labor implications such as loss of manufacturing companies due to cheap labor, and reliance on imports to make U.S made products. If President Trump indeed […]

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Texas State Recap of Space Absorption 2016

February 2, 2017

Tweet In 2016, San Antonio was the only large market in the entire state to maintain absorption concurrent with new construction, while Houston saw the largest decline in occupancy falling to 87.9%, the lowest it has been since the great recession. The Dallas-Ft. Worth market led the state in effective rent increases rising 6.4% to […]

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