For many people who receive notices of increased commercial property values, taxes come to mind almost immediately. After all, when the amount you pay is based on county appraisers’ belief of what your property is worth, any uptick in assessed value directly affects your bottom line. And for Texas property owners everywhere, those amounts have seen a steep upward tick in recent years.

At Lane Property Tax Advocates, part of our promise to unburden your business is helping you understand how property values, taxes and other factors work together — and what broader trends are shaping your tax liabilities. Here, our commercial real estate pros offer insights into current market conditions and tips to help you stay ahead of rising costs.

What’s Driving the Ongoing Property Value Increase Trend?

Texas has stood at the forefront of the property value increase trend for a number of years, particularly in rapidly growing metro areas such as Austin, Dallas-Fort Worth, San Antonio and Houston. In Harris County, for instance, an estimated 60% of commercial properties increased in value in 2025. Noticed values totaled $265 billion in 2025, a $5 billion (or 2%) increase from 2024’s noticed values.

While other parts of the country have seen slowdowns or corrections, Texas markets remain resilient. This is driven in large part by economic, demographic and policy-related factors. Let’s take a look at a few of the main issues contributing to the rise.

• Surging Population Growth: Texas continues to be a top destination for relocation, with thousands of people moving into the state each week. This population boom drives demand for housing, retail, office space and infrastructure.
• Corporate Relocations & New Industry Introduction: As major companies such as Tesla, Oracle and Samsung expand into Texas, they bring with them tens of thousands of jobs. At the same time, they drive up demand for industrial and office space, bolstering valuations.
• Low Housing Inventory & High Construction Costs: Texas’ limited supply of new construction, due in large part to labor shortages and costly building materials, has kept supply tight and prices high across both the commercial and residential sectors.
• Increased Investor Interest: Investors around the globe have begun to focus on states such as Texas for their better yields and long-term growth prospects. This added attention not only increases competition for assets, but fuels valuation growth.

The current combination of factors has put continued pressure on commercial property values, even as other markets level off or correct. For Texas property owners, the property value increase often translates to a growing tax burden — and a growing need for proactive valuation review and protest measures.

How Your Commercial Property Valuation Impacts Your Tax Bill

Property taxes go toward funding critical services such as public schools, roads, emergency services and municipal infrastructure. In Texas, which has no personal income tax, commercial property valuation plays a particularly important role in determining how much each property owner contributes to that revenue pool. In fact, Texas property taxes frequently rank among the highest in the nation.

Your commercial property valuation is the foundation for how your annual property tax bill is calculated. This valuation is determined by your county appraisal district (CAD) and reflects what the CAD believes your property would sell for under current market conditions. A few of the most common factors that go into determining this value include:

• Market Value: What your property would likely sell for on the open market, considering recent sales of similar properties.
• Comparable Properties: The sale prices and characteristics of nearby properties with similar size, use, condition, and location.
• Income Approach: For income-producing properties such as offices, retail businesses or apartments, projected income and expenses may influence valuation.
• CAD Methodologies: Most CADs use mass appraisal systems which apply uniform valuation models across large groups of properties to streamline the assessment process.

It’s important to note that, while mass appraisals are efficient, they lack the nuance required to adequately assess individual properties. Issues such as vandalism, needed repairs and vacancy rates, for instance, have the potential to drastically alter a property’s value.

As a result, blanket valuations are often higher than a property's actual market value, leading to overinflated tax bills. That’s why it’s essential for property owners to review their commercial property valuation notices carefully each year and consider filing a protest when values seem out of sync with market conditions or the property’s true state.

How to Protect Your Bottom Line Against Rising Property Values

Even moderate commercial property valuation increases can translate to significant tax liability spikes, and that can hit bottom lines hard. Tax credits are available for commercial property owners in certain situations, such as those restoring historic structures, while homeowners can benefit from exemptions and caps on increase rates. Taking the step to protest your commercial property taxes on an annual basis, however, is the best way to ensure you’re only paying your fair share.

We recommend working with a professional firm such as Lane instead of approaching an appeal on your own. Not only will an experienced team have a firm grasp of local laws and deadlines, as well as what’s needed to build an iron-clad case, but they have the time, knowledge and resources it takes to fight back on your behalf — and do it well. When you allow them to take the time-consuming work on for you, you can return focus to your everyday work.

Market shifts, rising property values, taxes and the like can all result in stress for a commercial property owner. Having the right team by your side can go a long way toward keeping costs in check and minds at ease. If you have questions about current conditions or ways our team can help you fight unfair commercial property taxes, feel free to reach out at any time. Lane is in your corner and glad to help.