Yes, tenants either directly or indirectly pay property taxes. With net leases, the tenant is directly responsible for paying the property taxes. With gross leases, the commercial property owner writes the check to the tax entities. However, the source for payment of taxes is the rent tenants pay. Commercial property owners seek an equitable yield in investment property. Higher property taxes lead to higher rent. Any way you look at it, higher commercial building property taxes mean higher rents and less net yield to the building owner.