Jones Lang LaSalle Incorporated: JLL Adds Cost Separation to its Growing List of Valuation Consulting Services

CHICAGO, February 9, 2022 – JLL today announced that it has added cost segregation analysis services to its valuation advisory offerings. The new service is led by the Renewable Energy team and will enable its infrastructure and renewable energy clients as well as traditional commercial property owners to maximize their tax benefits.

Cost segregation is an analysis of accelerated real estate depreciation and examines building components to find qualified assets that can reduce a homeowner’s tax liability. This type of analysis distinguishes between shorter-lived assets, or personal assets such as furniture, fixtures and equipment, and longer-lived assets, referred to as “real” assets. The result can result in lower taxable income and taxes owed, increasing cash flow in the business and allowing the owner to reinvest the savings for growth.

“The U.S. government allows for accelerated depreciation of certain real estate assets, and cost separation plays a vital role for the client,” said Vice President Anthony Vu, who has been responsible for developing the service line. “By composing a client’s building and applying advanced tax rules and regulations, they can improve their cash flow and reduce their tax burden.”

As a cost segregation engineer, Anthony Vu’s 15 year career includes cost segregation studies for over 300 properties of various building types for private and public companies, resulting in a value of cumulative improvements of more than 5 billion dollars. He has extensive knowledge of renewable energy projects including investment tax credits (ITCs), capitalization and payback periods.

According to Vu, cost segregation also plays a key role in the depreciation and valuation of renewable energy installations. In particular, the assessment includes identifying qualifying properties that qualify for the federal business investment tax credit.

“The qualifying property is accelerated depreciation,” he said. “Renewable energy facilities can be entered into a structured finance transaction, either as a tax fair partnership or as a tax sale-leaseback.”

Vu and his team report to Mike Bammel, National Practice Leader for JLL Valuation Advisory’s Renewable Energy Business. Joining Vu are senior partners Jessica Anuvattanachai and Chis Cheah, who are cost segregation specialists. The team plans to add more engineers and cost segregation specialists by the end of the year.

“We are very excited to build this practice and have brought in an experienced team who are very familiar with what is eligible property,” Bammel said. “Under Anthony’s leadership, the team will identify these assets and support results to help avoid risk.”

JLL Valuation Advisory is the essential guide to the evolution of real estate values ​​and risks. We bring together unparalleled human intelligence and experience, with continuous data-driven insights to uncover a panoramic view of value and risk across all industries and geographies.

JLL’s 2,000 trained valuation professionals are connected in over 50 countries, sharing real-time information and data to provide personalized client solutions and advice for its clients’ real estate and business interests. The team is globally connected, but also maintains industry expertise and deep local knowledge of each market.

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