Commercial property in Polk County showed a positive gain for the first time since 2007 when it was assessed in January.

The 76 types of commercial property on which the Polk County assessor keeps a tally was valued at $7.8 billion, a 6 percent increase from 2014.

Changes in property values had dropped steadily since 2005, when they posted a 9 percent increase.

The taxable value of multifamily properties will decline steadily from this year through 2022. Though assessed at full value, owners will pay taxes on a formula based on slightly more than 86 percent of value for the 2015 tax year and dropping to the residential rate, now about 55 percent of value, in 2022.

Beginning this year, the Class M or multifamily designation consists of mobile home parks, manufactured home communities, land leased communities, assisted living, and properties primarily used or intended for human habitation containing three or more units.

All other commercial properties will be taxed at 90 percent of their assessed value. In the past, owners have paid taxes based on 100 percent of assessed value.

The changes were ordered by property tax legislation that was passed in 2013 after state lawmakers had struggled since the 1970s to change formulas for taxing commercial property and controlling the overall statewide growth in property values.

Lawmakers have promised to fill the gap left by the lower formula, something legislators call backfill.

For the city of Des Moines, that figure will amount to about $5 million a year. However, local officials understand if lawmakers decided that annual revenues will not fill that funding gap.

This year, the Class M properties are valued at slightly more than $1 billion. 

Assessors also recorded $312 million in new commercial construction and $39 million in multifamily construction. On the other hand, properties valued at a total of $15 million were demolished.

Apartments increased in value by 12.4 percent, while banks, mausoleums and golf courses were unchanged from 2014. 

Net change in commercial property values 2014 – 2015

Multifamily
2014 | 2015 | % Change
$948,542,440 | $1,055,487,980 | 11.3% 

All other commercial properties
2014 | 2015 | % CHANGE
$7,355,037,950 | $7,804,896,210 | 6.1%

Source: Polk County assessor’s office

A decade of change in commercial property values

Year | % Change
 2005 | 9%
 2007 | 5.5%
 2009 | 0%
 2011 | -5%
 2013 | 0%
 2015 | 6.1%

Source: Polk County assessor’s office

Changes by property type

Apartment – 12.4%
Apartment High Rise – 12.4%
Apartment Conversion – 12.4%
Apartment Assisted Living – 6.7%
Auto Showroom Sales – 6.7%
Auto Service – 6.7%
Auto Salvage – 6.7%
Banks Savings & Loan – No change
Bowling Alley – 6.7%
Car Wash – 6.7%
Retail Convenience – No change
Fraternal Organization – 6.7%
Fraternity/Sorority – 6.7%
Funeral Home Mausoleum Cemetery – No change
Golf Course/Club House – No change
Grain Elevator – 6.7%
Green House Nursery – 6.7%
Retail Grocery – 6.7%
Hanger – 6.7%
Health & Recreation – 6.7%
Skating Rink – 6.7%
Hotel Motel – 12.4%
Hotel High Rise – 12.4%
Industrial Light – 17.2%
Lumber – 6.7%
Mobile Home Sales – 6.7%
Mobile Home Park – 12.4%
Nursing Home – 6.7%
Office – 2.2%
Office & Retail – 2.2%
Office & Apartment – 6.7%
Office & Warehouse – 17.2%
Office High Rise – 2.2%
Office Condominium – 2.2%
Office Medical – 2.2%
Parking Garage – 2.2%
Parking Lot – 6.7%
School – 6.7%
Ready Mix Asphalt/Concrete – 6.7%
Research Lab – 6.7%
Restaurant Fast Food – 6.7%
Restaurant Tavern – 6.7%
Bar Lounge – 6.7%
Retail – 6.7%
Retail & Office – 6.7%
Retail & Apartment – 6.7%
Retail & Warehouse – 17.2%
Laundromat – 6.7%
Retail Large Discount – 6.7%
Retail & Condominium – 6.7%
Auto Repair Shop – 6.7%
Shopping Center Regional – 6.7%
Shopping Center Neighborhood – 6.7%
Storage Yard – 6.7%
Tanks – 6.7%
Theatre – 6.7%
Warehouse Transit – 17.2%
Veterinary Clinic – 6.7%
Warehouse – 17.2%
Warehouse Cold Storage – 17.2%
Warehouse Mini – 17.2%
Warehouse Condominium – 17.2%
Other – 6.7%
Child Care – 6.7%
TV/Radio – 6.7%
Quarry – 6.7%
Church – 6.7%
Hospital – 6.7%
Charitable – 6.7%
Continuing Care Facility – 6.7%
Government – 6.7%
Land Semi Improved – 6.7%

Source: Polk County assessor’s office