$10.5 Million Assessment Reduction for Commercial Property in Allegheny County

Originally published July 22, 2011. Updated October 2026.

Attorney Noah Fardo obtained an assessment reduction of more than $10.5 million for a commercial property client in Pittsburgh. The three-year appeal was resolved in the Court of Common Pleas of Allegheny County and produced property tax savings of more than $411,000.

The Strategy: Current Value, Not the 2002 Base Year

At the time, most Allegheny County appeals were argued using the 2002 base year, on the theory that values had been lower in 2002. This appeal took the opposite approach. It was won using the property’s current fair market value.

Few taxpayers realized that, in those years, Allegheny County owners could choose between the 2002 base-year value and current market value. If a property had lost value, or its vacancies or income had changed significantly, it could make sense to set the base year aside and focus on current value. We expected that option to end with the coming reassessment.

Using the Income Approach

Noah attributed the result to changing commercial vacancy rates in western Pennsylvania. “The income and expense reports for the property simply did not support the current assessment,” he said. “Investors would never have paid what the property was assessed at.”

In assessment appeals, the income approach is typically described as the value that would give an investor the prevailing expected rate of return on the investment, plus recapture of the investment. Pennsylvania law requires the cost, comparable sales and income approaches to be considered in valuing property. For this income-producing property, the income approach was the most accurate way to show how much its value had declined.

What This Means for You Today

• For income-producing property, rents, vacancies and expenses can be the strongest evidence in an appeal.
• Keep clean income and expense records. They are often the heart of a commercial case.
• Learn more on our commercial property appeals page, see our case results, and check current rules in our tax appeals FAQ.

Talk to Us

If you own commercial property in Allegheny County, call 412-802-6666, text 412-855-5511, or send us a message for a free consultation.

Past results do not guarantee a similar outcome. Every case is different.