Cost segregation for industrial yards & laydown facilities
An industrial yard is the rare property where there is barely a building to segregate at all. The value is the ground itself — engineered and surfaced for storing pipe, equipment or containers — plus the fencing, lighting, drainage and scales that make raw acreage usable. Almost the entire improved cost is 15-year site work, with a guard shack thrown in.
| Modeled reclass range | 20–45% |
|---|---|
| Typical study fee (Cost Seg Smart) | See pricing guide |
| Recovery periods captured | 5-, 7- and 15-year vs the 39-year shell |
| Delivery | Engineering-based; virtual or on-site depending on the provider |
1What reclassifies in a industrial yards & laydown facilities
In a industrial yard / laydown, cost segregation typically reclassifies 20–45% of depreciable basis out of the 39-year building shell into 5-, 7- and 15-year property. The components that recur:
| Component | Recovery period | Authority carried (with caveat) |
|---|---|---|
| Heavy laydown surfacing — compacted aggregate, asphalt or reinforced concrete | 15-year | Improved yard surfacing is generally a land improvement (Asset Class 00.3); it is usually the largest short-life line and scales with treated acreage. |
| Perimeter fencing, security gates & bollards | 15-year | Site security improvements are generally land improvements; motorized gate equipment may be §1245 depending on the facts. |
| Yard & pole lighting | 15-year | Site lighting serving the yard is generally a land improvement; any building-mounted service wiring is an engineer-review item. |
| Site drainage, retention & stormwater systems | 15-year | Engineered drainage and stormwater improvements are generally land improvements; raw grading remains non-depreciable land. |
| Truck scales & weigh equipment | 5-year | Weighing equipment serving the yard operation may qualify as §1245 property when it functions as equipment rather than a structural foundation; depends on the facts. |
| Guard shack / small office structure | 39-year | A permanent office or guard building generally remains 39-year real property, though a portable/temporary unit may be treated differently depending on the facts. |
| Raw grading, excavation & underlying land | non-depreciable | Clearing, rough grading and the land itself are non-depreciable; only the improvements placed on the land generate depreciation. |
2Typical results and what drives the spread
Across standardized industrial yard / laydown configurations, the engine models an accelerated share of roughly 20–45%. Heavily surfaced, fully fenced and lit yards with drainage and scales sit at the top of the range; lightly improved gravel lots with minimal infrastructure sit lower. These are modeled ranges, not a promise for any specific building — see by the numbers.
3By the numbers (original data)
4What a study costs for this type
Study fees track building size, documentation quality and whether an on-site inspection is performed. See the pricing guide for current market bands; competitor fees are sourced there, not quoted in prose here.
5Provider comparison — the Top 5 for this asset class
Every provider below is scored on the same fixed rubric, weighting relevant industrial yard / laydown evidence most heavily. Facts are drawn from each provider's public materials and dated.
| Provider | Score* | Relevant industrial yard / laydown evidence | Profile | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RE Cost Seg Engineering-first · National (Houston, TX) Best published pricing Best for virtual delivery Most transparent turnaround | 7.9How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Cost Seg Smart site owner Engineering-first Best published pricing Best for virtual delivery | 7.8How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Baker Tilly National accounting/advisory · National (Chicago, IL) Best for national on-site coverage Most transparent turnaround | 7.6How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Source Advisors Engineering-first · National (Fort Worth, TX) Best for national on-site coverage | 7.3How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Cherry Bekaert Engineering-first · National (Richmond, VA; #1 Southeast) Best for national on-site coverage | 7.2How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → |
Top 5 of 22 firms scored for industrial yard / laydown. See every firm's full profile and per-type standing in the provider directory.
*Score is this site's published rubric output (0–10) for industrial yard / laydown, weighting relevant property-type evidence most heavily (see how we compare) — click any score for its build-up. It is not a customer rating and no reviews are used. Cost Seg Smart is the site owner and is scored on the same rubric.
6Is it worth it — break-even
Because so much of an industrial yard's cost is already 15-year site work, a study can move 20–45% of depreciable basis into short-life pools, and the present-value benefit often clears a study fee at a lower basis threshold than building-heavy property — earlier still when bonus depreciation applies to the land improvements. The timing-shift caveat still governs: recapture on a near-term sale erodes the benefit, so a yard held for a quick turn captures less than one held long term.
7Frequently asked questions
If there's almost no building, is a cost segregation study still worthwhile?
Often yes, and sometimes more so. Because most of an industrial yard's improved cost is already 15-year site work, a study can reclassify 20–45% of depreciable basis, and the benefit can clear a study fee at a lower basis than building-heavy property — especially with bonus depreciation on the land improvements.
Doesn't all the grading and dirt work count?
No. Raw grading, excavation and the underlying land are non-depreciable — they stay with the land. Only the engineered improvements placed on it, like surfacing, drainage and fencing, generate depreciation, which is why separating prepared ground from improved surface is the core of the study.
What class does the yard surfacing fall into?
Improved laydown surfacing — compacted aggregate, asphalt or reinforced concrete engineered for load — is generally treated as a 15-year land improvement. It is usually the single largest short-life line and scales with the treated acreage rather than any building footprint.
How is the guard shack or small office handled?
A permanent guard shack or office structure generally remains 39-year real property. A portable or temporary unit may be treated differently depending on the facts, so its classification is reviewed individually rather than assumed.
What pushes a yard toward the high end of the 20–45% range?
Density of improvements. A fully surfaced, fenced, lit and drained yard with truck scales sits near the top, while a lightly improved gravel lot with minimal infrastructure sits lower — because there is simply less depreciable site work to reclassify.
Sources and authority consulted
- Rev. Proc. 87-56 (MACRS asset classes)
- IRS Cost Segregation Audit Techniques Guide (Pub 5653)
- Cost Seg Smart per-vertical component engine (modeled ranges + component authorities).
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