Shopping Centers

Statutes: ARS § 42-13201, § 42-13202, § 42-13203, § 42-13204, § 42-13205, § 42-13206

Shopping Centers

A.R.S §42-13201 states that a "shopping center" means an area that is comprised of three or more commercial establishments, the purpose of which is primarily retail sales, that has a combined gross leasable area of at least twenty-seven thousand square feet, that is owned or managed as a unit with at least one of the establishments having a gross leasable area of at least ten thousand square feet and that is either owner-occupied or subject to a lease that has a term of at least fifteen years.

Those properties that do not qualify are referred to as non-qualifying shopping centers that under statute will be valued by the same procedures and using the same standard methods and techniques (i.e., the three recognized approaches to value) that are used for other general commercial use properties.

More information

By default, qualified shopping centers, as defined by ARS § 42-13201, are valued using the cost approach that incorporates an accelerated depreciation schedule computed annually by the Department of Revenue. Owners may instead elect to have a qualified shopping center valued using the Straight Line Building Residual method (SLBR) pursuant to ARS § 42-13204.

Visit our FAQs section for frequently asked questions.


If an owner elects to have the property alternately valued using the SLBR method in Lieu of the Accelerated Depreciation Cost approach, then owners must make this election each year by submitting a Request to Elect Income Valuation (SLBR) and all required documentation to the Assessor’s Office before September 1 of the year preceding the valuation year.

Additional information can be found in the Assessor’s policy on initial SLBR election.