Commercial real estate can play a pivotal role in business development and growth. However, a business’s success is often dependent on the limitations placed upon it by its commercial property. This is why it is usually critical for these businesses to carefully consider the terms of their lease or purchase agreements to avoid business litigation. Yet, these agreements are not the only things that can affect the viability of commercial property.


A property’s assessment can also have serious ramifications for those who hold commercial property. The biggest affect, of course, is on a property owner’s taxes. An assessment that shows that the value of a piece of property has significantly increased can raise property taxes. In the case of commercial real estate, which is often more valuable to begin with, the change in property taxes can be overwhelming and threaten to eat into a business’s profits.


On the other hand, Tennesseans who are looking to sell commercial property may struggle to understand an assessment that shows a decrease in the property’s value. In these instances, the assessment can drive down the selling price, thereby threatening the property owner’s investment.


Fortunately, those in Knox County who own commercial property can choose to appeal an assessment. To do so, these property owners typically must file a complaint with the county Board of Equalization, which is comprised of five to seven members. This group of individuals has the power to change an assessment outcome. If, once the Board issues a decision, a property owner is still in disagreement, then he or she can seek a hearing before an administrative law judge. From there, an individual can appeal an adverse decision to the Assessment Appeals Commission, then the State Board of Equalization and finally to Chancery Court.