Case Studies: Shopping Center

Read through these shopping center case studies to find out how cost segregation can save strip malls and marketplaces lots of money. We’ve conducted numerous cost segregation studies for shopping malls, resulting in significant tax savings.

Shopping center owners and strip mall investors often have significant capital tied up in long-term 39-year depreciation schedules, despite the fact that these properties are rich with short-lived assets. Engineered Tax Services helps retail landlords unlock immediate liquidity by identifying building components—such as specialized tenant improvements, decorative facade elements, security systems, and extensive site work—that qualify for accelerated 5, 7, or 15-year recovery periods. Because a shopping center requires frequent reconfigurations to accommodate new tenants and maintain consumer appeal, an ETS engineering-based study typically reclassifies 20% to 35% of the total building cost. This strategy front-loads tax deductions, providing the necessary cash flow to fund modernizations, manage high tenant turnover, or acquire additional retail assets.

Shopping Center Case Studies

The sprawling infrastructure of a shopping center—from the high-intensity parking area to specialized interior lighting—offers extensive opportunities for tax recovery through cost segregation and federal energy incentives. Engineered Tax Services meticulously documents assets like monument signage, parking lot lighting, and specialized electrical and plumbing systems for anchor tenants to move them away from long-term schedules. For example, a $7.1 million shopping center in Jupiter, Florida, realized over $2.5 million in first-year tax savings after ETS performed a detailed engineering review. Furthermore, Engineered Tax Services identifies massive savings through Section 179D energy tax deductions for high-efficiency HVAC and lighting systems, which can reach up to $5.81 per square foot in 2025. These results demonstrate how ETS delivers the technical rigor and IRS-compliant documentation necessary to maximize Net Present Value and ensure a defensible tax position for retail marketplaces.