Retail cost segregation in Texas.

Why retail properties reclassify well in Texas

Texas has no state income tax and is the largest U.S. state for new commercial construction. Heavy industrial, multifamily, energy-sector, and hospitality activity make it the largest single state for cost segregation engagements.

Retail properties have a particular profile that makes cost segregation especially valuable: strip centers, single-tenant, anchored — site work, signage, TI allowances. The shell sits on a 39-year recovery period under MACRS — but every retail is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a retail in Texas, TDA studies typically reclassify 20–28% of depreciable basis. Combined with 100% OBBBA bonus depreciation on property acquired and placed in service after January 19, 2025, that translates the entire reclassified amount into a year-one deduction.

Texas markets we serve

We deliver retail cost segregation studies across Texas, including Houston, San Antonio, Dallas, Austin, Fort Worth. Engineering-based methodology and RSMeans cost data on every engagement.