Image Credit: Crexi – Industrial Sales over $499k Jan. 1 – May 29, 2025 – South Carolina
Per the web site, Crexi, there were 205 Industrial properties over $499,000 that have sold so far in 2025 through May 29, 2025. In the image above, you can see the distribution of the industrial properties. The Upstate of South Carolina which includes Greenville, Spartanburg and Anderson had 77 sales. The Midlands area which is Columbia, had 57. Charleston had 38 closed sales.
Crexi lists industrial properties as:
Flex
Warehouse
Distribution
R&D
Manufacturing
Refrigerated / Cold Storage
If you need an estimate for cost segregation, I’m based in Greenville and work all over the state of South Carolina as well as across the U.S. Here’s a link to some of the industrial properties I’ve studied.
Oil Change Buildings have special status in the IRS tax code – kind of like C-stores but not completely. Often times these entire buildings are classified as 15 year class life as long as they meet the IRS guidelines on 50% of their revenue coming from oil (check with your own tax advisor on this). We do study a lot of these because many operators don’t get 50% of their revenue from sales of oil.
This building was placed into service in 2024 when bonus depreciation was 60%. The owner’s CPA was on the ball and had us run some numbers to see if it might make sense to do a cost segregation study on the building to see what we might squeeze out especially with the 5 year class life property. If the 5 year class life property comes in anything north of 5%, it will be a win for the owner as they will be able to take the balance of the depreciation not taken as bonus over the next 4 years. So in 2025, 2026, 2027 and 2028, they will get an increased depreciation deduction above what they would have gotten had they not done the study and just taken 60% bonus depreciation.
No doubt there have been many of these oil service buildings that have gone into service at some point in 2024…many of them could also be taking advantage of these smart tax strategy but most won’t. Either they won’t be aware of it or their CPA won’t be. It’s nice to see CPAs who are paying attention to these details.
Brands that we often see as oil change or oil service buildings include: Jiffy Lube, Take 5, Valvoline and Strickland Brothers.
Congress is debating the Trump 2025 Tax Bill for the fiscal year 2025 – 2026. The House has passed a bill and it sits in the Senate. What will happen with 100% bonus depreciation? When will it apply?
If you’re trying to follow along, I believe the House bill is called, “One Big Beautiful Bill” or “H.R. 1.” The bill will extend the 2017 Tax Cuts and Jobs Act (TCJA) provisions so many in the commercial real estate world loved!
I had some conversations recently with commercial real estate brokers and commercial building owners. Some where thinking that they might make 100% bonus depreciation retroactive to 2024. That is HIGHLY unlikely and I have not heard that discussed. It is not in the House bill. What they plan to do is to make 100% bonus depreciation available to properties placed into service as of 1/20/25 – Trump’s Innauguration Day. So you an do your studies now and apply the 100% bonus depreciation on your 2025 taxes when you file them at some point in 2026. You do not need to wait to do the cost segregation study until Congress passes the bill and the President signs it. Get your studies done to know what your tax liabilities look like.
