Andy Babula, director of the real estate program at the University of St. Thomas Opus College of Business, recently spoke with KARE 11 about the impact that downtown real estate losses have had on rising property taxes.
From the story:
The decline in commercial property values, and the rise of vacant office space in the heart of the Twin Cities, has been playing out gradually since the pandemic shifted the way Americans work.
“It’s been a slow trickle,” said Andrew Babula, director of the real estate program at the University of St Thomas. “When there’s vacancy, that means there’s less income and when there’s less income, the values of the properties start declining.”
But after crunching some numbers based on recent losses in downtown Minneapolis Babula said the impact isn’t as big as many, including himself, might have expected.
“Even though office properties are declining, it’s not extremely significant,” Babula said.
