- Property values in the Magnificent Mile area of Chicago jumped 30%, as assessed by Cook County Assessor Fritz Kaegi, reflecting a triennial review of market conditions.
- The increase was largely driven by higher valuations of multifamily buildings and commercial properties, such as hotels and iconic retail spaces.
- This is the first citywide property assessment since the pandemic, and final reports are still pending for Chicago’s central office district, the Loop.
Property values in the area around Chicago’s Magnificent Mile surged by 30% in the latest triennial assessment conducted by Cook County Assessor Fritz Kaegi.
The latest assessments, released on Thursday, showed significant increases across all property classes in the area north of the Chicago River.
Assessment Analysis
As reported by Bloomberg, the increase, which includes both residential and commercial properties, reflects notable changes in the city’s local real estate market over the past three years.
According to a statement from the assessor’s office, multifamily apartment buildings and commercial properties, including hotels and retail establishments, saw the largest upticks. The newly assessed values can be appealed by property owners, but they serve as an important benchmark for understanding market trends in one of Chicago’s most iconic neighborhoods.
Changing Winds
The Windy City is currently undergoing its first full property assessment since the pandemic, with the last one completed in 2021. Unsurprisingly, this year’s valuations are being closely monitored.
The assessment process began earlier this year, with initial reports for areas like Fulton Market, known for its rapid growth and development. The final assessment report for 2024 will cover the Loop, Chicago’s central office district, where vacancies and property distress have become more pronounced.
Tax Implications
The triennial assessments are critical to determining how property tax responsibilities are distributed between residential and commercial property owners.
The new valuations reflect post-pandemic realities, so businesses and residents in the assessed areas may see changes to their tax burdens.
The recent surge in property values around the Magnificent Mile could result in higher tax contributions from commercial entities, while office vacancies in other parts of the city may shift tax loads elsewhere.
