City of Chicago commercial real estate owners should prepare for massive property tax increases

With a pending Cook County triennial reassessment impacting the City of Chicago this year, commercial, multifamily, and industrial property owners throughout the area are preparing to receive updated notices of value for the first-time post pandemic. During the last City of Chicago reassessment in 2021, there was an average property value increase of 37%. Since then, over 20,000 Cook County properties between 2021-2023 saw a tax bill increase of 100% or more year-over-year. On average, the northern suburbs saw an average increase of 38% in 2022 during their triennial reassessment; and the south and west suburbs saw an average increase of about 40% in 2023 during their triennial reassessment.

Our analysis indicates that these trends show no signs of slowing down, and we expect an increase in multifamily, commercial, and industrial assessments in the City of Chicago to increase at an average of 45% – 60% in 2024; roughly three times the increase homeowners are likely to see this reassessment. Cook County Tax Assessor Fritz Kaegi notes a history of under-assessing commercial properties as a catalyst for such massive increases in 2024.

View the entire City of Chicago reassessment calendar.

Chicago commercial real estate appeals

Our Cook County property tax team has expansive experience working in Cook County (whether that be for the Cook County Board of Review, or local property tax law firms) specializing and successfully appealing multifamily, office, and industrial properties. We are deeply familiar with the complexities of the Cook County appeal process and are prepared to assist commercial real estate owners and investors through various stages, including:

• Assessor’s Office appeals
• Attorney selection and preparation
• Board of Review level appeals
• Illinois Property Tax Appeal Board or Circuit Court level appeals

Not all attorneys are equal in the Cook County appeal board scenarios, especially with the 2024 City of Chicago reassessment looming. Baker Tilly Tax Partners strategically selects the appropriate attorney based on asset class to effectively navigate the higher appeal levels likely needed due to the projected value increases this year.