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BREAKING DOWN THE FUTURE OF NNNs: PART 2: PROPERTY TAXES
As Boulder continues to grow and evolve, so do the financial pressures facing commercial property owners. Recent assessments and policy changes have led to notable shifts in commercial property taxes—impacting landlords, tenants, and investors alike. In this edition, we take a closer look at the current state of commercial property taxation in Boulder, the key drivers behind recent changes, and what it means for businesses operating in the area. We talked to Jason Flynn, President & Founder of Catalyst Property Tax Consultants, to get an expert opinion on the future of commercial property taxes.
In general, what is your opinion of the recent Boulder County property value assessments?
Jason: We can see that residential values have decreased overall, while commercial values have increased. Warehouse and flex properties rose by 25% and 17%, respectively, while office and retail properties increased by 13%. It appears that the county made an effort to reflect the changes in the individual sectors separately. Many owners are shocked that the values have increased because they are focusing on current conditions rather than what was happening in 2023 and 2024.
What should our clients and CRE property owners/landlords consider as they receive their new assessed property valuations from the county tax assessors?
Jason: We believe it is important to challenge the new assessment, even if the value has remained flat. The 2025/2026 assessment is based on data from 2023 until mid-2024. Property owners are experiencing higher vacancy rates and less traffic from prospective tenants. There is a disconnect between the data used for assessment purposes and what is happening with the properties. Landlords are hesitant to significantly drop rates to fill spaces because they know they will be locked into that rate for a couple of years. The real estate market and economy are in uncharted territory, meaning no one knows if this situation will last for a matter of months or years. This uncertainty is leading to fewer transactions as everyone waits to see what will happen. A reduced number of leases means less data to rely on. It is critical that owners appeal so we can use the process to reflect the current conditions of the properties.
BOULDER NEWS
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FEATURED LISTINGS
6101 Lookout Rd | IND/FLEX | $12,680,000
2560 28th St, Boulder |OFFICE |$12/RSF
3825 Walnut St, Boulder | IND/FLEX | $12/RSF
1689, 1725, 1845 Skyway, Longmont | IND/FLEX/COMMERCIAL KITCHEN |$15/RSF
4750 Table Mesa, Boulder |OFFICE |$15/RSF
CRABTREETEAM NEWS
We have all stayed busy since our last update – Liz celebrated her first Mother’s day alongside Istvan – they are soaking up all the early moments with Miss Stevie (who is quickly becoming a regular on our team calls). Scott and Becky have had end of the year talent shows and lacrosse games to attend and will be celebrating Kaden’s middle school continuation this week. Austin and his son, Langston enjoyed a class trip to Cal-Wood, which proved to be the perfect kickstart to the summer. Kelly and Levi are pinning down some last minute details before their wedding this weekend, where the whole team will get to celebrate!
We are eager to see what the summer months will bring and look forward to catching up with you all in Q3.
