2025 Western Illinois Property Tax Appeals: What Commercial Property Owners Need to Know

Illinois tax assessments for 2024 will be published shortly, which means it’s time to review your property tax assessment if you own commercial property in Illinois, particularly around the Quad Cities Area (QCA). Illinois properties are assessed at 33.33% of the assessor’s estimate of the market value of your property as of January 1st of the assessment year. For 2025 tax payments, this means the value as of January 1st, 2024. No consideration is given to external factors that change the property value after this date.Two businesspeople discuss tax appeals for an Illinois property assessment.

The Illinois Department of Revenue provides guidelines for property tax appeals, and it’s important to understand the process and any deadlines. If you think your property is over-assessed, you have the right to appeal, and it’s best to start early. Typically, an increase in the assessed value will be published in a local newspaper. In some cases, you’ll receive an individual notice in the mail.

Considering a Tax Appeal?

If you’re considering an appeal, the process starts at the local level. Your local County Assessor’s site will often list the specific steps for an appeal. The general process typically follows these steps:

  1. Obtain the assessed valuation of your property.
  2. Determine the fair market value of your property, ideally through recent comparable sales or a professional appraisal.
  3. Discuss the assessment with your township or multi-township assessor. If they still have the assessment books for that year, they may be able to correct any errors without a formal appeal.
  4. Determine the basis for your formal appeal, such as a higher market value assessment or incorrect property data.
  5. File a written appeal with your County Board of Review using the appropriate form (typically PTAX-230 for Non-Farm Assessment Complaints).
  6. For Rock Island County, check their Board of Review for deadlines and appeal procedures.
  7. Present evidence of unfair assessment to the Board of Review at a hearing. This may include property record cards, comparable sales data, photographs, and appraisal documentation.
  8. If dissatisfied with the Board of Review’s decision, you can appeal in writing to the Illinois Property Tax Appeal Board (PTAB) or file a tax objection complaint with the circuit court.

For more detailed guidance on how to handle property tax appeals, you might also find our previous post about the Rock Island County Property Tax Appeals helpful. It covers a detailed step-by-step approach.

Act Now: Don’t Wait to Review Your Assessment

If you suspect your commercial property assessment is inaccurate, start gathering your documentation now. Each county has its own appeal deadlines, and missing these critical dates can result in paying higher taxes than necessary. For any questions, assistance with an appraisal, or guidance through the appeal process, please Contact Us at (563) 355-6606 or email info@royrfisher.com. For more information on our property tax appeal services, visit our Commercial Real Estate Services page, and let us help you ensure your property is fairly assessed for the 2025 tax year.

What do Tenants Need to Know When Leasing Commercial Properties?

There is a complex landscape to navigate when establishing a commercial property. The decisions you make can significantly impact your operations and bottom line. Whether you are seeking space for your office, medical practice, retail store, or industrial building, there are some key points to keep in mind.

One of the first things you want to note in taking up a particular space is its location. For those opening an office or retail space, proximity to clients is everything. It’s helpful to have both visibility and access from highways or high-traffic roads. Those with industrial buildings don’t often require a neighborhood location but will still benefit from being close to interstates and highways that make it easy to transport goods to customers. It’s also important to consider your employees’ commute to work as it will help attract a good employee base.

For retail stores, it can help to do a market analysis and ensure your store has a competitive edge. Knowing about other similar businesses nearby can help you choose between two good locations and make the best decision for your customer base.

Commercial Property For Rent

Another key point is your lease terms. Consider your business needs and growth plan. A shorter-term lease may offer more flexibility but it comes at a premium. A long-term lease offers stability, but you can become locked into a space that doesn’t suit your business growth plans. Leases can be offered on different terms such as gross leases or net leases. You may be required to pay a pro-rata share while the landlord covers structural costs or be expected to pay all costs.

Your tenant improvements (TI) allow you to make your space uniquely your own. It provides space suited to your needs and wants. Be sure you discuss who is responsible for covering the costs and whether these improvements revert to the landlord at the end of the lease.

While newer buildings are compliant with ADA requirements, if you are in an older building, this may not suit your client base, especially if you own a medical practice. You’ll want to be sure your clients, particularly those with disabilities can access your building. Having automated doors, ample parking, and elevators or ramps, depending on the building layout allows you to ensure your clients are comfortable with your space.

Other features include the building-to-land ratio to ensure there is enough space to maneuver around the parking lot. Industrial locations may want to ensure there are enough dock doors. For those leasing medical offices, you may need specialized plumbing for exam rooms or electrical requirements for diagnostic equipment.

Leasing space demands thorough research and careful consideration. Your choice of location, lease terms, and property features can significantly impact your success. Always negotiate with the landlord to ensure the lease aligns with your unique requirements. It is also a good idea to seek legal and real estate advice to protect your interests during the leasing process.

How do Interest Rates Impact My Property Value?

In the ever-changing landscape of commercial real estate, understanding the impact of rising interest rates is crucial. As noted by experts at EY – US, a strong economy can sometimes offset the negative impacts. Various factors such as economic growth, inflation, and market conditions influence this complex relationship.

This has limited effects on current property owners with a fixed mortgage rate but will impact potential purchasers needing new financing. For those with variable-rate mortgages, the impact can be immediate, leading to increased monthly payments. Meanwhile, trying to recapture those increased holding costs in rents can also lead to increased vacancy rates as higher costs may deter new tenants.

So, what strategies can investors employ to mitigate these impacts? Proper research and due diligence are key to making informed decisions. Locking in current rates with fixed-rate mortgages can protect against future rate increases, and diversification across different asset classes can also provide a hedge against interest rate risks.

Reports indicate that increased borrowing costs have led to a decline in commercial retail property values. Real-world examples and expert insights further underline the importance of understanding this relationship. As interest rates increase, the cost of owning increases, resulting in either the return to the equity declining and/or an increase in the capitalization rate. Currently in the Quad Cities, market demand has remained strong some property types resulting in little decline in value noted.

Staying informed and adaptable is crucial in this dynamic interest rate environment. With the right strategies and a keen understanding of market dynamics, it’s possible to mitigate the profound impact that rising interest rates can have on the commercial real estate market, say experts at Kearny Bank.

For more insights, check out our blog post on What Changes the Value of Commercial Property. If you think you might need a commercial real estate appraisal, feel free to explore our services or contact us for further discussion.