Why industrial properties reclassify well in New York
New York hosts the country's densest commercial real estate market in NYC. High state and city income tax rates make federal cost segregation deductions extremely valuable. NY also decouples from federal bonus depreciation, so studies model both books.
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 New York, 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.
New York markets we serve
We deliver warehouse & industrial cost segregation studies across New York, including New York City, Buffalo, Rochester, Yonkers, Syracuse. Engineering-based methodology and RSMeans cost data on every engagement.