Luxury Home and Commercial Owners in McLennan County Face Steep 2025 Valuation Hikes
WACO, TX, UNITED STATES, June 11, 2025 / EINPresswire.com / --
The McLennan Central Appraisal District (CAD) has released its proposed property tax assessment values for 2025. Both high-value commercial and residential properties are facing significant increases. While the overall rise in residential property values is 3.5%, this figure masks much steeper hikes for certain property owners. Particularly owners of luxury homes, new construction, and properties with larger square footage, which all saw notably higher assessments. This may reflect a strategic move by the appraisal district to raise revenue without heavily impacting lower or middle-income homeowners.
Commercial properties followed a similar pattern. With an average increase of 6.9%—nearly double the residential rate—high-value commercial real estate bore the brunt of the reassessment. This suggests that luxury real estate values rose faster than the general market.
During the 2025 reassessment in McLennan County, around 28% of homes were found to be overvalued, while 72% were assessed at or below market value. This is encouraging news for the majority of homeowners. However, those with overvalued properties may face disproportionately high tax bills and are at risk of being unfairly taxed.
Luxury Value Homes Increase by 14.3%
According to the McLennan CAD, in 2025, the most significant value increases were observed in residences with higher or luxury values. For instance, homes valued at $1.5 million or more increased in value by 14.3%, growing from $612 million to $699 million. In contrast, lower-value homes that range between $250,000 to $500,000 grew by 1.9%, rising from $10.5 billion to $11 billion. The graph illustrates that higher-value homes were likely reassessed more aggressively than lower-value homes.
In McLennan County, property values per square foot generally rose with home size, with the largest homes seeing the steepest increases. Homes between 2,000 and 3,999 square feet experienced the smallest gain at 2.7%, while those between 6,000 and 7,999 square feet saw a significant 10.9% increase. Homes over 8,000 square feet also rose sharply, with their total assessed value climbing from $160 million to $174 million—an 8.9% increase.
According to McLennan CAD, most homes saw minimal increases in assessed value based on their year of construction, except for newly built and undated homes, which experienced significantly higher increases. The lowest value increase was seen in houses built between 2001 to 2020 by 1.0%. Funny enough, houses built in 2021 and later rose in value by 21.7%, which was the highest in value with a construction date assigned. Contemporary homes that were built in 2021 and later grew in market value from $1.5 billion in 2024 to $2 billion in 2025. Homes without an assigned construction date significantly increased by 138.2% in 2025. This could undermine fair property assessments and raise concerns about how values are being calculated without key information like a home's age.
28% of Homeowners Face Unfair Value Assessments in 2025
Based on 2024 house sales prices and the 2025 reassessment of property values, McLennan County overestimated 28% of county residences in 2025. This suggests that 28% of homeowners may face inflated tax bills because their properties were assessed above market value, carrying a larger share of the tax burden. Meanwhile, 72% of the homes were assessed below their market value. While the majority of homeowners benefited from conservative assessments, a significant minority may be unjustly penalized unless they take action to challenge those inflated valuations.
High-End Commercial Property Owners Face High Increases
An analysis of commercial property tax assessments in McLennan County by value range shows that valuable or high-end property increased the greatest in value. Properties valued at $500,000 or less experienced the lowest increase of 0.2%, growing less than $1 billion from 2024 to 2025 in market value. In comparison, commercial property worth $5 million or more experienced an increase of 11.6% with a 2025 notice market value of $7 billion.
For the 2025 tax year, McLennan CAD raised the market values across all categories of commercial properties. The largest increases in value were seen in hotels with 24.4% and apartments with 18.7%. The jump in assessed values may indicate that these properties were previously undervalued, and the appraisal district is now aligning them more closely with current market trends. Land faced the lowest value increase in assessment by 0.8%.
McLennan CAD's commercial property assessments for 2025 have increased across all construction years, with a particular emphasis on recently constructed properties. The highest increase in value was seen in commercial property built in 2021 and later with 25.3%, rising greatly from $546 million to $684 million. In contrast, property built before 1960 saw a modest increase of 2.7%. This disparity highlights a market shift favoring newer commercial developments, possibly due to modern amenities, energy efficiency, better locations, or higher investment interest.
The Growing Disconnect Between Property Values and Market Data
The 2025 commercial property tax reassessment by McLennan CAD stands in sharp contrast to findings from Wall Street firm Green Street Real Estate Advisors. While Green Street reports a 21% decline in commercial property values since their 2022 peak, McLennan CAD indicates a 6.9% increase in those same values over the past year. This divergence highlights a significant discrepancy between local tax assessments and broader market trends.
New Apartment Buildings Fall Victim to High Increases
The data reveals no consistent pattern between the age of apartment buildings and the rate of increase in 2025 property tax assessments in McLennan County. Despite the mixed trend, noticeably, newer apartment buildings are experiencing high value increases. In particular, apartments built in 2021 and later experienced an increase of 36.6%, growing from $109 million in 2024 to $148 million in 2025. Older apartments built before 1960 saw an increase of 7.3%.
Apartment owners in McLennan County experienced a substantial property tax hike in 2025, with the CAD increasing the overall taxable value of apartment buildings by 18.7%. Despite the high increase, one apartment subtype faced a decline in 2025. Multifamily apartments experienced a decline of 67.6%, dropping from $59 million in 2024 to $19 million in 2025. On the other hand, garden apartments increased in value by 21.4%, growing from $2 billion to $2.2 billion in the past year. This contrast reflects changing tenant preferences, shifts in development trends, or differences in location, amenities, or management.
Modern Office Buildings Face a Striking 48% Value Increase
According to McLennan CAD reports, property tax assessments for 2025 office buildings have increased tremendously for modern or new offices. The greatest value increase was seen in newly constructed office buildings in 2021 and later by 48%, growing in value from $63 million to $93 million in the past year. Older offices experienced very little increases. For example, offices built before 1960 increased in value only by 1.4%. This data paints a picture of the growing inequality in property valuations within the same asset class, driven largely by age, condition, and likely location.
In McLennan County, only one office subtype was reported for property tax assessments in 2025. Standard office buildings increased by 4.2%, rising from $2.2 billion to $2.3 billion.
Retail Property Value Averaged 4.7% Increase
Property tax assessments for retail buildings in McLennan County increased for all years-built categories. Retail properties constructed between 1961 and 1980 saw a slight growth of 0.9%, while those built between 2001 and 2020 experienced a bigger increase of 8.4%. The market value between 2024 and 2025 grew from $1.2 billion to $1.3 billion.
There was only one retail subtype reported by McLennan CAD and that property assessment value increased by 4.7%.
Recently Built Warehouses Take the Hardest Hit
All warehouse property owners in McLennan County witnessed property tax increases, but owners of buildings built in 2021 and later face the greatest strain in 2025. Properties built since 2021 are seeing steeper increases, which implies a possible focus by the appraisal district on newer, likely higher-value or more modernized structures. Warehouses built in 2021 and later increased in value by 36.2%, growing from $203 million to $277 million. In comparison, warehouses built between 1961 and 1980 increased by 1.3%.
McLennan CAD assessed the market value of only one warehouse subtype in 2025. Standard warehouses increased by 10% in assessment value. The total market value grew from $1.5 billion in 2024 to $1.7 billion in 2025.
McLennan CAD's 2025 Property Revaluation Takeaways
The 2025 property reassessment in McLennan County reveals a clear pattern: high-value residential and commercial properties are experiencing the most significant tax increases. While the average residential value rose by 3.5%, owners of luxury homes, larger properties, and new construction saw much steeper hikes.
This was mirrored in the commercial sector, where high-value properties faced increases averaging 6.9%. These trends may indicate that the appraisal district may be shifting the tax burden toward higher-end properties. The commercial real estate market appears to be favoring newer assets, possibly due to changing workplace expectations, sustainability standards, or investor preferences.
Although 72% of homes were assessed at or below market value—a reassuring figure for most—28% were overvalued, potentially subjecting those property owners to unfair and inflated tax obligations.
Consistent Property Appeals Are Your Best Defense Against Rising Taxes
Property owners in McLennan County, Texas have the opportunity to successfully appeal their property tax assessments. Whether the property is residential or commercial, the appeals process provides a chance to present evidence that supports a lower valuation. Filing an appeal independently can cause stress and be time-consuming due to its complexity. Partnering with a property tax consulting firm like O'Connor can be highly effective, as the majority of protests result in a reduction. For over 50 years, O'Connor has helped property owners minimize their tax burdens through strategic, cost-effective solutions.
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
+ + +1 713-375-4128
email us here
Visit us on social media:
YouTube
X
Legal Disclaimer:
EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Brent Rooker Reveals Preferred Team Ahead of Trade Deadline
Brent Rooker Reveals Preferred Team Ahead of Trade Deadline originally appeared on Athlon Sports. The Athletics are making it clear which players are part of their long-term vision. Instead of selling off their top performers, the A's have doubled down on youth and internal development, locking in two of their most promising hitters to multi-year extensions. The first move came in January, when the club signed veteran slugger Brent Rooker to a five-year, $60 million extension. Rooker, who won a Silver Slugger Award and earned his first All-Star nod in 2024, has continued to anchor the lineup this season. Through 104 games, he's batting .263 with 21 home runs and 56 RBIs, recently hitting his 100th career home run. Two months later, the A's extended outfielder Lawrence Butler with a seven-year, $65.5 million deal that includes a club option through 2032 and could reach $87.5 million in total value. The 24-year-old has become one of Oakland's most reliable bats in 2025, posting a .249 average, 17 home runs, and 56 RBIs in 387 at-bats. His second-half surge in 2024 (.300/.330/.565) was a major bright spot during a year when the team improved from 50 to 69 wins. The A's enter play on July 24 with a 42-62 record, last in the American League West. However, they've clearly prioritized stability as they continue their relocation process. Now playing home games at Sutter Health Park in Sacramento, the franchise is set to move to Las Vegas in 2028. The long-term uncertainty has led to speculation that the A's might shop players like Rooker ahead of the deadline. Instead, Rooker made it clear where he stands during a recent appearance on the Foul Territory podcast. 'I'm not going anywhere, Kratzy,' Rooker told co-host Erik Kratz. "I signed the extension because I'm where I want to be. I believe in what we're doing, the people that we have (roster and players), our coaching staff, in the building. I believe in everything going on and I want to be a part of that." Between Butler's breakout and Rooker's consistency, the A's appear to have their offensive foundation in place. The A's may not be ready to contend yet, but the message is clear: they're not starting from scratch much longer. This story was originally reported by Athlon Sports on Jul 24, 2025, where it first appeared.
Yahoo
24 minutes ago
- Yahoo
Could a Quantum Computing Bubble Be About to Pop? History Offers a Clear Answer
Key Points IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing have reached valuation levels well beyond those seen during prior stock market bubbles. Each of these companies has recently raised capital through a series of equity offerings and stock issuances. These moves could suggest that the valuation levels for these businesses are not only abnormally high, but unsustainable. These 10 stocks could mint the next wave of millionaires › Last summer, companies such as IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), and Quantum Computing (NASDAQ: QUBT) were unknown penny stocks. However, as quantum computing steadily made its way toward center stage in the artificial intelligence (AI) realm, each of these companies witnessed meteoric rises in their share prices. Over the last 12 months, IonQ stock has blasted higher by 517%, while Rigetti, D-Wave, and Quantum Computing have experienced surges of at least 1,500% as of this writing (July 21). With valuations reaching historically high levels, could investors be on the verge of witnessing a quantum computing bubble bursting? Is quantum computing in a bubble? The chart below illustrates valuation trends among popular quantum computing stocks on a price-to-sales (P/S) basis. As I outlined in a prior article, the quantum computing stocks above are trading at far higher P/S multiples compared to levels seen during the dot-com and COVID-19 stock bubbles. For example, during the internet boom in the late 1990s, stocks such as Amazon, Cisco, and Microsoft experienced peak P/S ratios in the range of 30x and 40x. Taking this a step further, popular COVID stocks such as Zoom Communications and Peloton saw P/S multiples top out at 124x and 20x, respectively. The big theme here is that IonQ, Rigetti, D-Wave, and Quantum Computing are each trading for valuation multiples that could be seen as historically high, even when compared to prior bubble events. With that said, other AI companies that are also exploring quantum computing -- such as Nvidia, Amazon, Alphabet, and Microsoft -- currently trade for much more reasonable valuation multiples when compared to the companies in the chart above. For this reason, I do not think the entire quantum computing landscape is at risk of experiencing a bubble-bursting event. However, IonQ and its peers have been dropping some breadcrumbs in recent months that lead me to think the smaller quantum computing players could be on the verge of a harsh sell-off. What's going on under the hood with quantum computing stocks? After some digging into certain filings with the Securities and Exchange Commission (SEC), I think IonQ, Rigetti, D-Wave, and Quantum Computing may be trying to signal some important things to investors: In February, IonQ announced that it planned to raise up to $500 million through a series of stock issuances. The company doubled down on its capital-raising ambitions more recently, offering 14,165,708 shares at a price of $55.49 -- raising nearly $1 billion in the process. In June, Rigetti raised $350 million in capital after completing an at-the-market (ATM) equity offering. Between June 11 and June 27, D-Wave Quantum raised $400 million through an ATM offering. Of note: This followed a prior raise of $150 million that occurred in January. In late June, Quantum Computing raised $200 million following the issuance of 14 million shares at an average price of $14.25. What's really going on here? With each of these quantum computing stocks trading near all-time highs, it appears to me that management is looking to take advantage of frothy market conditions. Quantum computing is a research-heavy, capital-intensive industry. Management at IonQ and its peers surely understand this, and so I see these capital raises as a calculated move to capitalize on inflated, overstretched valuations. Should you invest in quantum computing stocks? To me, any hint of a bubble surrounding IonQ and its smaller peers may already be in the process of bursting. Under the surface, the various stock issuances and equity offerings annotated above could suggest that management does not believe current price levels are sustainable. By using the dot-com and COVID bubbles as benchmarks, history would suggest that a major correction could be on the horizon for these small quantum computing stocks. Issuing stock to raise funds is not sustainable in the long run. Furthermore, consistently diluting shareholders through these offerings could call into question how these companies are allocating capital. In my eyes, if investors are seeking exposure to the quantum computing industry, they are best off exploring more diversified opportunities in big tech as opposed to the smaller, more speculative players analyzed in this piece. Trump's Tariffs Could Create $1.5 Trillion AI Gold Rush The Motley Fool's analysts are tracking a massive shift in U.S. tech. Over $1.5 trillion is already flowing into infrastructure, AI, and advanced manufacturing… and the number keeps climbing. Following a major tariff policy shift, a new AI Gold Rush is taking shape, and we think . It builds the tech infrastructure that Apple, OpenAI, and others suddenly can't live without. We just released a full write-up on this under-the-radar stock — and why now might be the exact moment to move. Continue » *Stock Advisor returns as of July 21, 2025 Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, Microsoft, Nvidia, Peloton Interactive, and Zoom Communications. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Could a Quantum Computing Bubble Be About to Pop? History Offers a Clear Answer was originally published by The Motley Fool
Yahoo
24 minutes ago
- Yahoo
Precision Global Corporation Partners with CubeSmart to Manage Four Strategic Storage Facilities Across Texas
ROCKWALL, Texas, July 26, 2025 /PRNewswire/ -- In a move that underscores its rapid growth and commitment to operational excellence, Precision Global Corporation (PGC) proudly announces its new partnership with CubeSmart, one of the nation's leading self-storage operators, to manage four of its Texas-based storage assets: Brazosport Storage in Clute, TX FM 1777 Storage in Royse City, TX Lakehill Storage in Lakehills, TX Tin Top Storage in Granbury, TX As of Friday, July 25, 2025, CubeSmart officially assumes third-party management of all four properties. This marks a significant milestone in PGC's expansion within the self-storage sector and reflects the company's focus on enhancing value through best-in-class operations and strategic partnerships. "CubeSmart doesn't just manage storage—they redefine it," said Brian Sullivan, President of Precision Global Corporation. "Their leadership in this space is undeniable. By entrusting CubeSmart with these four facilities, we're elevating the customer experience while positioning each asset for sustained success." With more than two decades of experience and a reputation for operational excellence, CubeSmart is the third-largest owner and operator of self-storage facilities in the U.S., managing over 1,300 properties nationwide. Their systems, marketing infrastructure, and service-first culture make them the gold standard for facility owners looking to scale. Under CubeSmart's management, tenants at all four Texas locations can expect elevated service, improved visibility, and enhanced operational performance through CubeSmart's proven model. This partnership aligns with Precision Global's ongoing mission: to scale a national portfolio of self-storage and RV park assets by partnering with elite operators and creating long-term value for both customers and investors. About Precision Global Corporation Precision Global Corporation is a national private equity firm specializing in real estate investment and development. With a focus on high-growth, income-producing assets like self-storage and RV parks, PGC is known for its entrepreneurial spirit, disciplined execution, and strategic partnerships. The company is actively expanding its portfolio in markets with strong demographic and economic fundamentals. For more information, visit About CubeSmart Founded in 2004, CubeSmart is a publicly traded REIT and recognized industry leader in the self-storage sector. Managing over 1,300 facilities nationwide, CubeSmart offers expert third-party management, technology-driven solutions, and a customer-first culture that sets them apart as the go-to partner for facility owners across the U.S. View original content to download multimedia: SOURCE Precision Global Corporation LLC
