Talking Points Refuting Kaegi's Assertions
Press conference talking points explaining why rising property tax bills are tied to broader market conditions, not just Board of Review actions.
Talking Points for Press Conference
Introduction:
Good [morning/afternoon/evening]. I am George A. Cardenas, Commissioner for the Cook County Board of Review. Today, I am here to address recent claims and clarify the true state of property assessments and taxes in Cook County.
Addressing Assessor Kaegi’s Claims:
Recently, Assessor Fritz Kaegi attributed the rise in property tax bills to the Board of Review lowering assessments on commercial properties. This narrative is incomplete and does not reflect the broader context.
Commercial Real Estate Market Challenges:
The commercial real estate market, particularly downtown office spaces, is facing unprecedented challenges. According to a Crain's Chicago Business report, downtown office vacancy rates have soared to an all-time high of 25.8% as of mid-2024, nearly double the rate at the onset of the COVID-19 pandemic.
These high vacancy rates are driven by remote work trends and corporate downsizing, significantly depressing commercial property values.
Board of Review’s Responsibility:
The Board of Review has a responsibility to correct assessment errors to ensure fair and accurate property valuations. Many land values were erroneously assessed, leading to skewed property values across the county.
Our role is essential in maintaining equity and fairness in the assessment process, preventing undue financial strain on property owners.
Impact of Market Conditions:
Landlords are grappling with higher vacancies, reduced demand, and increased financial distress, including foreclosures and debt burdens.
The 'right-sizing' of office spaces by companies has further pushed up vacancy rates, negatively impacting property values.