Property Reassessments 2025
How landlords are modeling pass-through costs.
Commercial Corridor Impact
The latest AVI adjustments push commercial valuations up 18% on average across Center City. For NNN leases, these are direct pass-throughs to retail tenants already struggling with foot traffic drops. We modeled a standard 2,500 sq ft restaurant space on Walnut St. Taxes previously accounted for $6/sq ft in CAM charges; they will now approach $8/sq ft.
Worked Example: 2,500 Sq Ft Retail
| Metric | 2024 | 2025 Projected |
|---|---|---|
| Assessed Value | $1,200,000 | $1,416,000 |
| Property Tax Liability | $16,797 | $19,821 |
| Per Sq Ft Pass-Through | $6.71 | $7.92 |
Frequently Asked Questions
Can I appeal the assessment?
Yes, the BRT accepts appeals, but commercial success rates have dropped to 14%.
Is the Use & Occupancy tax affected?
Yes, U&O is tied to assessed value, meaning a double hit for tenants.