"Cranes in the air!"

If you work, live in or visit Chicago's Central Business District (CBD) you cannot help but notice many construction cranes in the air heralding the beginnings of new real estate.  You might also want to know the Assessor of Cook County noticed the upsurge of these new structures, as well as the market's rise in sales prices and rents that make up the kettle of soup we call market values, assessments and real estate taxes.

In a recent public address to practitioners in the real estate tax assessment arena, the Cook County Assessor's office made mention of the following...

• They are paying attention to the CBD construction. They know about all the new constructions.

• There have been six 2013 sales ranging from $195 - $325 psf. 

• They are tracking the West Loop activity.

• They are taking a close look at Class A office buildings on Wacker Drive.

• They are taking a close look at Michigan Ave. hybrid buildings (retail, office, condo).

• They are taking a close look at Oak and Rush Street buildings.

• They are taking a close look at buildings that have not filed tax assessment appeals since 2009.

• They are going to be aggressive and equitable with the proposed assessments.

• If there is a sale, provide income before and after the sale to rebut the sale price.

• Luxury Loop apartment buildings will be in a different category than other apartment buildings.

So begins the 2015 triennial reassessment of the City of Chicago and our concern that real estate taxes may go as high as some of those cranes.  Suffice it to say that potential increases in assessments of the CBD will affect all property in Cook County.  To know what to expect we have to look at how property is assessed...(see the full text on our website at www.amariandlocallo.com.