John Rogers, Jr., a partner in the firm's Nashville office, was recently featured in Law360 Real Estate Authority to discuss the city’s sharp increase in property tax assessments and the challenges now facing commercial and residential owners alike.

In “Nashville Owners Must Face The Music As Tax Burden Surges,” Rogers shared perspective on the 45% median increase in assessed values reported by the Nashville-Davidson County Property Assessor's Office following this year’s quadrennial reassessment. Despite the Metropolitan Council lowering the tax rate from $3.254 to $2.814 per $100 of assessed value, many property owners are still facing higher tax bills due to the dramatic jump in valuations.

“It was the biggest increases that I've seen or heard of as far as baseline tax valuation for fair market value assessments for taxes since I've been here,” said Rogers, who has practiced real estate law in Nashville for nearly 28 years. “And it's an interesting scenario for both individuals and for business.”

Rogers explained that Tennessee’s business-friendly environment and population growth, particularly following COVID, contributed to a wave of commercial activity that is now being reflected in reassessed values. He also emphasized the importance of proactive planning and diligence for both buyers and owners, especially in commercial real estate.

“If you're a buyer, has the target property owner reserved any rights for 2025 as far as appealabilities and those types of things as to the assessments? That would be No. 1,” Rogers advised. “No. 2, I would certainly reemphasize, look at the lease documents if it's a rental property of any nature. Make sure you have looked at your leases as far as the ability to assess and/or recoup tax bumps through tenants.”

He added that real estate investors need to pay close attention to lease language that might limit their ability to recover increased taxes, especially in commercial and industrial leases where such costs are often categorized as “noncontrollables.”

The interview also touched on the broader implications for affordability and redevelopment within Davidson County. With limited raw land available, Rogers noted a shift toward redevelopment and brownfield opportunities, while also expressing concern for longtime residents being priced out.

“There's a difference between expecting something and stomaching something,” Rogers said. “And I think regardless of whether people were expecting it, present company included, it's still kind of a bitter pill to swallow.”

The full article is available to subscribers on Law360 Real Estate Authority.