Commercial property owners facing tax increases after years of being under-assessed: report

As property taxes begin to soar across Cook County, data shows commercial owners paid less on average than they should have under former Assessor Berrios

TRD CHICAGO /
Jul.July 22, 2019 11:15 AM
Cook County Assessor Fritz Kaegi and former Assessor Joe Berrios (Credit: Twitter)

Cook County Assessor Fritz Kaegi and former Assessor Joe Berrios (Credit: Twitter)

Commercial property owners dealing with rising property tax bills under new Cook County Assessor Fritz Kaegi might just be finally facing the music after years of too-good deals under his predecessor.

Records show former Assessor Joe Berrios routinely under-assessed commercial properties, and the big tax increases now rolling out across the county might just be a correction to bring them in line with what they should be, according to Crain’s.

State data shows Cook County commercial property assessments were about what they should have been in 2011 but began to drop in favor of property owners during Berrios’ tenure.

In 2011, commercial landlords were assessed right around the 25 percent of property value required by state law. But by 2017 that average dropped to a little more than 19 percent, according to Crain’s analysis.

Multifamily properties, which were supposed to be assessed at 10 percent of their value, dropped from an average assessment of 12.7 percent in 2011 to 6.8 percent in 2017.

Berrios’ office also used inflated cap rates to determine properties values, the analysis showed.

Since taking office more than six months ago, Kaegi assessed the total value of north suburban commercial and industrial properties about 90 percent higher on average than last year, an effort he says brings the properties more in line with their actual worth. [Crain’s] — John O’Brien


Related Articles

arrow_forward_ios
Cook County Board of Review Commissioner Michael Cabonargi and Cook County Assessor Fritz Kaegi (Credit: Facebook, Cook County)

Cook County Board of Review slashes Kaegi’s commercial property assessments in 7 northern townships

Cook County Assessor Fritz Kaegi (Credit: iStock)

Fritz Kaegi on investor redlining, tax appeals, corruption, and what happens next

Wolf Point East at 313 W. Wolf Point Plaza and Nema Chicago at 1210 South Indiana Avenue (Credit: Hines, Nema Chicago)

Over 10K new apartments could flood Downtown Chicago by 2022. But there’s a catch

Trump International Hotel & Tower and Donald Trump (Credit: Trump and Getty Images)

Trump Tower tax appeal is under investigation

Cook County Assessor Fritz Kaegi (Credit: iStock)

CushWake says there’s no reason to freak out over Kaegi assessments

Cook County Assessor Fritz Kaegi (Credit: Twitter and iStock)

Cook County assesses priciest properties in suburbs at below recent sale prices: report

Property tax increases and other factors are encouraging hometown developers to seek projects in markets outside of Chicago (Credit: iStock)

Development drain? More local firms seek projects outside Chicago

Mayor Lori Lightfoot (Credit: Getty Images, iStock)

Here’s what Chicago’s new property taxes will look like

arrow_forward_ios
Loading...