Larkin Hoffman’s Timothy Rye recently authored an article for the commercial real estate publication REBusiness Online, explaining how recent trends in property taxes are burdening commercial real estate owners.

As Rye describes, with local governments across the country looking to close budget shortfalls in the face of declining property values, commercial real estate owners are seeing increases in tax rates. Rye writes that this “unfortunate and predictable scenario” has a negative impact on commercial real estate values.

Rye provides data on property tax rates in Boston, Minneapolis and Denver, showing an upward trend in all three markets for 2025. These increased rates reduce net operating income for gross-leased properties and increase occupancy costs for tenants in net-leased properties. 

Read the full article for further explanation from Rye on how tax increases can erode market stability.