Strip malls aren’t glamorous — but they’re reliable income producers, and this 12-tenant property in Centerville, Ohio turned out to be an excellent cost segregation candidate. More tenants means more tenant improvements, more specialized buildouts, and more opportunity to identify assets that don’t belong on a 39-year depreciation schedule.
The extra complexity was worth it. Our team reclassified over 40% of the property’s cost basis — with nearly 15% landing in 5-year property and close to 25% in 15-year site improvements. The investor improved his 2016 cash flow by nearly $100,000 from this single study alone.
More tenants, more work — but also more savings.