IRS PUB. 5653 · § 1.168(i)-6 · BENCHMARKS 2026 · n=412
Commercial · CostSeg BENCHMARKS v2.4
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PROPERTY-CLASS BENCHMARKS

Cost segregation, by property class.

Every commercial property type has a distinct reclassification profile. Office reclassifies in the mid-20s; retail and medical office reclassify into the low-30s; hospitality and self-storage clear 30% routinely. Pick a property class to see the engineered benchmarks and three representative analyses across eight commercial property types.

01 · BENCHMARK ATLAS  |  Reclassification rates by property class · Benchmarks 2026 (n=412)
UPDATED 2026-05-11 · LIVE
Agricultural & Food Processing Facilities property exterior
01 / — n = Typical market range; modeled on the industrial library plus process and refrigeration component sets
Agricultural & Food Processing Facilities
%
MEDIAN
20-45%P50
Auto Dealerships property exterior
02 / — n = Engine-modeled across standardized dealership configurations
Auto Dealerships
22%
MEDIAN
10-35%P50
Auto Service & Collision Centers property exterior
03 / — n = Typical market range; modeled on the auto dealership library with engineer review
Auto Service & Collision Centers
%
MEDIAN
18-38%P50
Bank Branches property exterior
04 / — n = Engine-modeled across standardized branch configurations
Bank Branches
22%
MEDIAN
15-32%P50
Bars & Breweries property exterior
05 / — n = Typical market range; modeled on the restaurant component library with engineer review
Bars & Breweries
%
MEDIAN
20-40%P50
Big Box Retail property exterior
06 / — n = Typical market range; modeled on the retail component library with engineer review
Big Box Retail
%
MEDIAN
12-28%P50
Cannabis Cultivation & Retail property exterior
07 / — n = Typical market range; engineer-scoped by proposal
Cannabis Cultivation & Retail
%
MEDIAN
25-50%P50
Car Washes property exterior
08 / — n = Engine-modeled across standardized car-wash configurations
Car Washes
48%
MEDIAN
25-60%P50
Churches & Religious Facilities property exterior
09 / — n = Typical market range; engineer-scoped by proposal
Churches & Religious Facilities
%
MEDIAN
8-22%P50
Cold Storage Facilities property exterior
10 / — n = Typical market range; modeled on the warehouse library plus the refrigeration component set
Cold Storage Facilities
%
MEDIAN
20-40%P50
Data Centers property exterior
11 / — n = Engineer-scoped by proposal; 38-60% is the QC review envelope
Data Centers
%
MEDIAN
38-60%P50
Dental Practices property exterior
12 / — n = Engine-modeled, bare suite to fully equipped
Dental Practices
19.9%
MEDIAN
17-22%P50
Distribution Centers property exterior
13 / — n = Typical market range; modeled on the warehouse component library with engineer review
Distribution Centers
%
MEDIAN
12-28%P50
Entertainment Venues property exterior
14 / — n = Typical market range; engineer-scoped by proposal
Entertainment Venues
%
MEDIAN
20-40%P50
Fitness & Gym Facilities property exterior
15 / — n = Engine-modeled across standardized fitness configurations
Fitness & Gym Facilities
20%
MEDIAN
10-35%P50
Funeral Homes property exterior
16 / — n = Typical market range; engineer-scoped by proposal
Funeral Homes
%
MEDIAN
12-28%P50
Gas Stations & Convenience Stores property exterior
17 / — n = Engine-modeled across standardized fuel/convenience configurations
Gas Stations & Convenience Stores
24%
MEDIAN
10-38%P50
Golf & Country Clubs property exterior
18 / — n = Typical market range; engineer-scoped by proposal
Golf & Country Clubs
%
MEDIAN
20-40%P50
Grocery Stores property exterior
19 / — n = Typical market range; modeled on the retail library plus the refrigeration component set
Grocery Stores
%
MEDIAN
20-38%P50
Hospitality property exterior
20 / HOS n = Industry sources (AICPA, IRS ATG)
Hospitality
30%
MEDIAN
26-34%P50
Hospitals property exterior
21 / — n = Typical market range; engineer-scoped by proposal
Hospitals
%
MEDIAN
15-32%P50
Industrial property exterior
22 / IND n = 45
Industrial
20.4%
MEDIAN
20-24%P50
Manufacturing property exterior
23 / — n = Engine-modeled central; 6-38% is the QC review envelope
Manufacturing
14%
MEDIAN
6-38%P50
Marinas property exterior
24 / — n = Typical market range; engineer-scoped by proposal
Marinas
%
MEDIAN
25-45%P50
Medical Office property exterior
25 / MED n = 45
Medical Office
32.9%
MEDIAN
31-34%P50
Mixed-Use property exterior
26 / MIX n = Engine-modeled central; 5-32% is the QC review envelope
Mixed-Use
12%
MEDIAN
5-32%P50
Multifamily (5+ Units) property exterior
27 / MF5 n = 22
Multifamily (5+ Units)
17.2%
MEDIAN
17-18%P50
Office property exterior
28 / OFF n = 45
Office
27.6%
MEDIAN
25-29%P50
Parking Structures property exterior
29 / — n = Typical market range; engineer-scoped by proposal
Parking Structures
%
MEDIAN
8-20%P50
QSR & Drive-Thru Restaurants property exterior
30 / — n = Typical market range; modeled on the restaurant component library with engineer review
QSR & Drive-Thru Restaurants
%
MEDIAN
22-42%P50
Restaurant property exterior
31 / RST n = 45
Restaurant
30%
MEDIAN
29-31%P50
Retail property exterior
32 / RTL n = 45
Retail
32.2%
MEDIAN
31-33%P50
Schools & Childcare Centers property exterior
33 / — n = Typical market range; engineer-scoped by proposal
Schools & Childcare Centers
%
MEDIAN
10-25%P50
Self-Storage property exterior
34 / STO n = Industry sources (SSA, IRS ATG)
Self-Storage
34%
MEDIAN
30-38%P50
Senior & Assisted Living Facilities property exterior
35 / — n = Engine-modeled across standardized senior-living configurations
Senior & Assisted Living Facilities
19%
MEDIAN
12-28%P50
Senior Apartments (55+) property exterior
36 / — n = Typical market range; modeled on the multifamily component library with engineer review
Senior Apartments (55+)
%
MEDIAN
14-28%P50
Short-Term Rentals (Airbnb, VRBO, Vacation Rentals) property exterior
37 / — n = Engine-modeled across standardized furnished short-term rental configurations
Short-Term Rentals (Airbnb, VRBO, Vacation Rentals)
30%
MEDIAN
25-35%P50
Skilled Nursing Facilities property exterior
38 / — n = Typical market range; engineer-scoped by proposal
Skilled Nursing Facilities
%
MEDIAN
12-30%P50
Strip & Neighborhood Centers property exterior
39 / — n = Typical market range; modeled on the retail component library with engineer review
Strip & Neighborhood Centers
%
MEDIAN
12-28%P50
Veterinary Clinics property exterior
40 / — n = Engine-modeled across standardized veterinary configurations
Veterinary Clinics
22%
MEDIAN
8-38%P50
Warehouses & Distribution Centers property exterior
41 / — n = Engine-modeled across standardized warehouse configurations
Warehouses & Distribution Centers
24%
MEDIAN
10-38%P50