Insight

When big office buildings are sold for big profits, property taxes increase

Big-profit deals have left Twin Cities businesses vulnerable to rent increases due to tax spikes.

September 5, 2015

Article by Kristen Leigh Painter, Published by Star Tribune

"A rash of big-ticket commercial property sales in the Twin Cities during the past two years sparked optimism in the regional economy and big profits for real estate owners.

There’s another effect: Property taxes are rising quickly for businesses all around the region.

Commercial property taxes, unlike those for most residential properties, are passed on to tenants. And a substantial bump in the value of one property can raise the cost of business for a company occupying another one — even if it’s across town."

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