Minneapolis’ commercial property values are slipping again, and homeowners are the ones picking up the slack. As another round of assessments knocks billions off downtown office towers, a larger share of the city’s property-tax burden is quietly shifting onto people who own houses and condos, right as city leaders finalize next year’s levy.
Local reporting shows a roughly 9% drop
According to the Minneapolis/St. Paul Business Journal, the total estimated market value of commercial properties in the city fell about 9 percent, to roughly $7.8 billion from $8.6 billion. The outlet reports that the decline will push more of the tax load onto homeowners. The story, published March 24 and reported by Caitlin Anderson, frames the drop as a central force in the looming tax debate at City Hall.
City assessment numbers and downtown impact
The city’s 2025 Assessment Report shows the broader commercial class slipping about 8.6 percent, from $10.1 billion to $9.4 billion, while the combined commercial and industrial category dropped to about $11.5 billion. Downtown commercial values alone were down roughly 9.5 percent. The report also flags much steeper hits for some marquee downtown office towers and notes that all of these estimates are based on sales between October 2023 and September 2024, according to the City of Minneapolis.
What does that mean for homeowners
The Star Tribune reports that residential parcels now make up about 53.6 percent of the city’s net tax capacity, up from roughly 51.6 percent last year. That shift means homeowners are in line to shoulder a larger share of city levies unless elected officials adjust the total levy or find another way to plug the gap. City budget documents and the mayor’s levy proposals are expected to shape how that burden ultimately lands…