Why industrial properties reclassify well in Michigan

Michigan's automotive and manufacturing base drives heavy industrial activity, with Detroit's revitalization adding multifamily and adaptive-reuse engagements.

Warehouse & Industrial properties have a particular profile that makes cost segregation especially valuable: distribution and manufacturing — racking, paving, dedicated process electrical. The shell sits on a 39-year recovery period under MACRS — but every warehouse & industrial is hundreds of components, many of which qualify for 5-, 7-, or 15-year recovery and accelerated bonus depreciation.

Typical reclassification ratio

For a warehouse & industrial in Michigan, TDA studies typically reclassify 15–22% 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.

Michigan markets we serve

We deliver warehouse & industrial cost segregation studies across Michigan, including Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor. Engineering-based methodology and RSMeans cost data on every engagement.