What is a hot spot?
- Physical place or mobile device providing internet access.
- Skin irritation common to bored pets (poor Fido).
- The real estate that everyone is frequenting (often a restaurant, club, or resort).
The hot spot in your jurisdiction is real estate that needs to be equitably assessed for property tax purposes. To do your assessment, you must confirm why it’s a hot spot by determining if the source of popularity is endemic to the real property. Or… is it hot because of branding, management, or the skill & popularity of the business operator.
Let’s discuss a hotel first. A new hotel situated first off the interstate highway may well be hot because of location: an attractive, super functional building for the intended use. Some of the largest and most successful hotel brands create physical enhancements to properties which add lasting value beyond ownership or franchise affiliation. The factors that render this as a hot spot relate to the real estate and should be considered in your analysis.
Next, think about a restaurant… if the property “everyone is going to” is frequented because of the popularity of the chef, this should be regarded for assessment purposes as room temperature. Not hot!