The “City by the Bay” has some of the most expensive properties in the world. With a population density only surpassed by New York City, there is competition for every type of property imaginable. San Francisco is famous as the heart of Silicon Valley and is the most important technology center on Earth. San Francisco also has a strongly diversified economy, with financial, tourism, shipping, and international trade all being big as well.

Due to restrictive space, every home and business is worth its weight in gold. This puts pressure on local commercial properties, making any ability to cut costs vital. Cost segregation is a great way to increase cashflow, as you can use accelerated depreciation to shield your business from income taxes. These savings can then be used to offset San Francisco’s notorious costs. Both short-life and long-term depreciation can be found in abundance in San Francisco, only amplified by the inflated cost of everything.

Depreciation can come from external or internal sources. Plumbing, fixtures, paint, carpeting, and dozens of other factors inside a building can be depreciated. Fencing, paint, parking lots, lighting, and landscaping can be done for the exterior. Expert appraisers from O’Connor know exactly where to find every piece of depreciation possible, delivering a cost segregation report sure to save you for years to come. Our appraisers do the majority of their work in California, despite us being Houston-based, and they know the best ways to approach a Cali property. The following chart shows a few San Francisco properties that we have been able to help in the past few years.