1 Minute Read
Season 2 — Episode 5: Finding a Competitive Edge Through Up-Front Cost Segregation Studies
2 Minute Read
A Viewpoint on Construction, Modern Takes on a Transforming Industry.
Season 2 — Episode 5:Finding a Competitive Edge Through Up-Front Cost Segregation Studies
In this episode of A Viewpoint on Construction, we dive into the complex topic of cost segregation with Frank Giudici, director of business development with Bedford Cost Segregation, LLC. Bedford performs detailed cost segregation studies on real estate properties for clients, finding assets like construction components or even discarded materials from building demos or remodels that can be used to advance depreciation. By identifying and shifting those items away from regular 27.5-year (habitable real estate) or 39-year (commercial real estate) schedules to five- or 15-year schedules — and providing a vehicle for owners to write off some of these depreciation costs as quickly as in year one of ownership, they’re driving significant value. Hear Giudici talk about partnering with contractors to work these cost segregation studies into contractors’ bids to help differentiate themselves from competitors. “If you can give an owner/developer a mechanism that can shift anywhere from 15% to 50% of the total hard and soft costs of his new construction building from 27 or 39-year buckets into five or 15-year buckets, it’s a no brainer,” he said.
Other listening options for this podcast: