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Officials in Richfield expect a drop in the city's tax base — and potential property tax hikes — after the Best Buy corporate campus property value was cut in half.

The city said in an announcement the value of the company’s Penn Avenue headquarters will drop from $63 million this year to about $32 million in 2027. According to the announcement, Best Buy requested the cut, and the Hennepin County Assessor granted it. 

Officials said that will lead to a 5 percent drop in the city’s commercial tax base. That could mean increased taxes for other property owners in the city.

“While this is disappointing news, we know that the commercial real estate market has been struggling,” City Manager Katie Rodriguez said in the announcement. “Recovery since COVID has been slow and large employers across the country have been working to adapt. We also know markets are cyclical and that it will evolve over time.”

Commercial and office property values in the area have been declining for several years. Hennepin County reported a 1.8 percent decrease from 2025 in its 2026 assessment report. 

The county determines properties’ values based on comparisons to similar properties and the estimated value of the land and buildings.

Richfield’s city council is scheduled to set a preliminary budget and tax levy in September, with final approval in December.

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Estelle Timar-Wilcox

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Officials in Richfield expect a 5 percent drop in the city’s commercial tax base after the Best Buy corporate campus property value was cut in half.

Best Buy HQ property value halves, shrinking Richfield's tax base

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