(Bloomberg) -- Property values rose 27% in a big chunk of Chicago that includes the burgeoning neighborhood of Fulton Market, home to fast-food chain McDonald’s Corp.’s headquarters and tech giant Alphabet Inc.’s Google regional hub.

Cook County Assessor Fritz Kaegi on Thursday released the initial assessments of residential and commercial properties for the area that includes all or part of more than a dozen neighborhoods situated west, southwest and northwest of the Loop, the city’s central business district. West Town, Austin, Humboldt Park and Little Village are just a few of the areas included in the calculation.

The values provide initial hints as to how much taxes businesses and residents will have to pay but can change dramatically amid an appeals process in the county. It’s the first such assessment since the end of the pandemic.

“It is important to understand that assessments in Cook County reflect market value over the last three years,” Kaegi said in a statement Thursday on his office’s website.

The total assessed value in the region rose to about $10 billion from roughly $8 billion a year earlier, according to the report. That figure includes single-family homes, retail corridors and clusters of restaurants. Fulton Market, a former meatpacking district that has been transformed into a bustling spot, is among those that is experiencing huge growth. 

Residential developers have big projects planned in Fulton Market, where one street has been deemed among the most expensive in the US, based on office rent. Additionally, about four Michelin star restaurants can be found there.

Residential property values rose 21%, while standalone commercial values increased 25% and industrial property values jumped 71% from a year earlier, according to the data. For commercial properties, their use, estimated income, vacancies and expenses are among factors included to calculate assessments, according to the assessor’s website.

The gains could help offset declines in other parts of Chicago, where commercial building owners have seen record high vacancies. Separate taxing bodies such as the city, school district and park district collectively set the total property tax levy in Chicago. The assessment from Kaegi’s office is one of the key factors used to calculate how much of that amount is paid by residents and businesses.

This year’s appraisals will also be closely watched to shed light on the impact of the pandemic citywide, and particularly on the central business district. Chicago, like cities across the globe, has faced commercial property distress in the Loop. The assessment for that area is expected to be released later this year.

Read more: Chicago Braces for First Post-Pandemic Property Tax Assessment

©2024 Bloomberg L.P.