Reclassification Percentages for Cost Segregation Studies

[Julio Gonzalez]

One question that a lot of real estate owners have in regards to Cost Segregation Studies is the percentage of assets that are reclassified from a 27.5 or 39 year useful life into asset specific useful lives (typically 5-15 years). Below is a chart showing the average reclassification percentages by property type.

• Apartment Building - 20-40%
• Conference Center - 25-35%
• Fitness Center - 22-45%
• Assisted Living Facility - 22-45%
• Golf Course - 28-60%
• Theme Park - 16-22%
• Grocery Store - 20-45%
• Hospital - 28-40%
• Auto-Car Dealership - 29-35%
• Hotels - 20-40%
• Research Facility - 22-45%
• Manufacturing - 20-40%
• Warehouse - 20-30%
• Medical Office/Clinic - 22-35%
• Resort - 25-45%
• Mixed Use - 20-40%
• Leasehold Improvements - 20-80%
• Office Building - 20-30%
• Retail Strip Mall - 18-40%
• Winery - 18-25%
• Restaurant - 20-80%
• Bank - 30-45%

Are there any other types of properties you would like more information on?

[Lee Ripma]

I find apartments come in on the low end of your range, 20% is my back of the envelope calculation.