Travis County Commercial Property Owners Experience High Increases In 2025 Compared to Residential Taxes

O'Connor discusses the high commercial value increases in Travis County compared to residential taxes in 2025.

AUSTIN, TX, UNITED STATES, May 7, 2025 /EINPresswire.com/ --

Travis Central Appraisal District has released proposed noticed values for property tax assessments in 2025. During the 2025 property tax reassessment in Travis County, approximately 31% of homes were overvalued. However, the majority — 69% — were assessed at or below market value. The typical home saw a small value increase of 0.7%, while commercial properties experienced a much larger rise of about 14.7%. These changes reflect adjustments for both existing properties and new construction.

Travis County Home Tax Assessments Increase by 0.7%

An analysis of property tax assessments by value range in Travis County shows that lower value homes saw a decline in value increases, but homes valued at over $1.5 million saw a great increase of 7.4%. The value assessment for homes valued at $250k or less declined by 3.1%, as well as homes values between $250 to $500k. Homes valued between $500k to $1 million declined in assessment values by 1.1%.

In Travis County, property values per square foot generally increased with home size, with larger homes experiencing the most significant gains. A clear trend shows that the higher the home’s value, the greater the increase in assessment. Homes between 2,000 and 3,999 square feet saw a slight increase of 0.4%, while those over 8,000 square feet surged by 17.5%. Homes between 6,000 and 7,999 square feet also saw a notable 14.1% increase. In contrast, homes under 2,000 square feet were the only category to see a decline, dropping by 2.9%.

According to Travis CAD, several homes according to year built faced declines in assessment values for 2025. The greatest decline was seen in homes built before 1960 with a 2.5% decline. However, homes built in 2021 and above saw a high increase in assessments of 17.3%. Homes with an unknown or unassigned year-built date also saw a slight increase of 5.1%.

Great News for Homeowners: Only 31% Of Houses Were Overvalued

In 2025, Travis CAD overvalued 31% of homes in the county based on a comparison between the 2025 reassessed property values and actual home sales prices from 2024. Meanwhile, 69% of the homes were assessed below their market value. While this trend suggests progress that fewer homes are being overvalued — it’s still concerning for many homeowners who continue to face high property tax bills driven by inaccurate or inequitable assessments.

Assessment for Commercial Property in Travis County Saw the Highest Increases in 2025

An analysis of commercial property tax assessments in Travis County by value range shows an upward correlation between property value and assessment increases. Lower-value commercial properties experienced declines or smaller increases, while higher-value properties saw significantly larger increases. For properties valued at $5,000 or less, assessments dropped by 8.9%, decreasing from $1.1 billion to $1 billion. In contrast, properties worth over $5 million experienced a 15.8% increase, rising from $121 billion to $140 billion.

For the 2025 tax year, Travis CAD raised the market values across all categories of commercial properties. The largest increases were seen in warehouses (21.8%) and land (17.9%), followed by apartments (15.6%) and offices (13.0%). Surprisingly, hotels had the lowest increase of 6.1%.

Commercial property assessments for 2025 by the Travis CAD increased across all construction years, in contrast to residential values, which saw some declines. Properties built in 2021 or later experienced the largest jump, with a 49.2% increase and a total 2025 market value of $23 billion. Meanwhile, properties built between 2001 and 2020 saw the smallest growth at 6.2%, with market value rising by less than $2 billion over the past year.

Incongruity Between Appraised Property Values and Market Performance

The 2025 commercial property tax reassessment by Travis CAD presents a stark contrast to the analysis conducted by Wall Street firm Green Street Real Estate Advisors. According to Green Street, commercial property values have declined by 21% since their peak in 2022. In contrast, Travis CAD reports that these values have increased by more than 14.7% over the past year.

Apartment Buildings in 2025 Increased in Assessment Value by 15.6%

The graph shows a mixed correlation between the year an apartment was built and the percentage increase in property tax assessments in Travis County for 2025. Apartments constructed in 2021 or later experienced the highest increase at 50.6%. In contrast, those built between 1981 and 2000 saw a 6.4% rise, while properties from 2001 to 2020 had a smaller increase of 4.3%. Notably, apartments built before 1960 experienced an 8.8% increase.

Apartment owners in Travis County faced a significant property tax increase in 2025, as the Travis Central Appraisal District raised the taxable value of apartment buildings by 15.6% overall.

Newer Office Building in Travis County Increased in Value in 2025

According to Travis CAD, property tax assessments for office buildings in 2025 have increased across all construction years. The smallest increase — 1.6% — applies to buildings with no specific construction date. The highest increase, 31.1%, affects office buildings constructed in 2021 or later. Meanwhile, buildings built between 1981 and 2000 saw a moderate increase of 17.0%.

Property tax assessments for both medical and general office buildings in Fort Bend County increased in 2025. Medical office buildings saw the largest rise, with a 15.6% jump, while general office buildings experienced a 12.3% increase.

Travis CAD: Newer Retail Properties Increased the Greatest

Property tax assessments for retail buildings in Travis County rose across the board, regardless of the year built, though no clear correlation was observed between age and value increase. Retail properties constructed before 1960 saw a significant rise of 10.4%, while those built between 2001 and 2020 experienced a small increase of 4.9%. The largest jump in value — 45.8% — was seen in retail buildings constructed in 2021 or later. However, despite the sharp increase, the newer properties make up only 3% of the county’s total retail property value.

Property tax assessments increased across most retail property categories in Travis County in 2025. Neighborhood shopping centers saw the smallest rise at 4.0%, while single-tenant retail properties experienced the largest jump, with a 10.5% increase. Malls was the only retail sub-type that did not experience an increase or decline but stayed consistent with a 2025 notice market value of $721 million.

Travis CAD Warehouse Tax Assessments Increased by 21.8%

All warehouse building owners in Travis County saw property tax increases, with the most significant hikes affecting newer properties. Warehouses built in 2021 or later faced a dramatic 81.8% increase, while those constructed between 1961 and 1980 experienced a more nominal rise of 9.9%. The warehouse category with unassigned construction dates increased by 4.1%.

Travis CAD determined the market values of two categories of warehouse properties: mini and regular warehouses. Regular warehouses increased the greatest out of the two by 24.4% and mini warehouse increased by 4.6%. The total market value grew from $14 billion in 2024 to $17 billion in 2025.

The Travis CAD increased by 0.7%, while the Austin Metro home prices have declined by 2.9% in the past year.

Summary for Travis CAD 2025 Property Tax Revaluation

In 2025, property owners in Travis County are seeing noticeable increases in their property tax assessments, particularly for commercial properties. While residential property values rose slightly — averaging just 0.7% based on value range, square footage, and year built—commercial assessments surged by an average of 14.7% across similar categories. Despite some relief for homeowners from previously high valuations, approximately 31% of residential properties remain overvalued.

Appeal Your Property Values Each and Every Year

Texas property owners, including those in Travis County, have the right to appeal their property tax assessments. Whether the property is residential or commercial, the appeals process offers an opportunity to present evidence showing the valuation is excessive. Filing an appeal or teaming up with a property tax consulting agency is usually beneficial since most protests lead to a reduction. O’Connor has been assisting property owners in lowering their tax liabilities using cost-effective tactics for almost 50 years.

About O'Connor:
O’Connor is one of the largest property tax consulting firms, representing 185,000 clients in 49 states and Canada, handling about 295,000 protests in 2024, with residential property tax reduction services in Texas, Illinois, Georgia, and New York. O’Connor’s possesses the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs a team of 1,000 worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.

Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™. There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.

Patrick O'Connor, President
O'Connor
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