Mar. 22--Homeowners aren't the only ones struggling to pay property taxes in the brutal economy.

The number of Twin Cities-area office, retail and other commercial properties behind in their taxes has risen sharply in the last year, outpacing the overall increase in delinquencies by a wide margin.

As of Jan. 2, there were 1,057 commercial properties in Hennepin County owing tax for 2008, a 38 percent increase from 2007. The overall increase for all types of properties with unpaid taxes in the last year, including residential, was less than 2 percent, according to the county's taxpayer services department.

The dollar amount of unpaid commercial property taxes rose 28 percent to about $11.4 million in 2008. The figure increased about 20 percent, to about $1.5 million, for apartment buildings.

The increases aren't significant enough to hurt the county's cash flow, according to Ken Rowe, an administrative manager in the taxpayer services department. The overall collection rate continues to exceed those planned in the county's budget, he said.

"But it's something we're keeping our eyes on," Rowe said. Although Minneapolis accounts for the bulk of delinquencies, only a handful of cities have none. Rowe said the increase is an indicator of the distress many commercial property owners are feeling because of the faltering economy.

Like property tax delinquencies, the economic downturn also has sparked an increase in commercial foreclosures. Last year they rose by 60 percent to 51 in Hennepin County and tripled to 33 in Ramsey County. But property tax experts say tax delinquencies and foreclosures -- whether commercial or residential -- aren't necessarily related. In fact, foreclosures sometimes wipe out delinquencies because the lenders typically pay off tax bills so they can retain control of foreclosed properties.

Hennepin County officials say most property owners pay off their tax bills in the year that follows a delinquency. Even so, the cumulative total of commercial properties with unpaid taxes is climbing steadily and so are the amounts owed. As of Jan. 2 there were 1,108 commercial properties owing close to $16 million in property taxes for the past four years.

"Our sense is that there's going to be more commercial properties in need of help [with delinquencies]," said William Ostlund, president of Coldwell Banker Commercial Griffin. The Minneapolis-based firm recently launched a new business unit that will focus on services for distressed properties.