Decayed wood is a common issue in urban trees that deteriorates tree vitality over time, yet its effect on biomass yield therefore stored carbon has been overlooked. The distribution pattern and extent of decay documented in this study was species-dependant and can be aggravated by arboticultural practices. Decay was found to be distributed in three different ways in the three different species evaluated. Central column, cone-shaped and pockets of decay of variable size for U. procera, P. acerifolia and C. maculata, respectively. Decay was more frequent and extensive in U. procera, than P. acerifolia and least in C. maculate. Decayed wood is not correlated with tree vitality in U. procera and may occur even in visually healthy standing trees within the genera. The absence of wood as a result of decay significantly reduces the standing volume of all three species examined. The standing volume of U. procera trees with DBH ≥ 40 cm needs to be discounted by a factor of 13% due to internal decayed wood regardless of the species vitality index. Calculations of stored carbon by urban trees may need to be discounted by a species-decay factor rather than a standard factor that account only for differences in biomass yield between natural and urban trees. The detrimental effect of decayed wood on the standing volume cannot longer be overlooked and need to be considered to better assess urban tree benefits.