Template files for Custom Post Type and Taxonomy

The way taxonomies work with rewrites, is that they have a ‘slug’. Look at the codex under register_taxonomy, you will see the ‘rewrite’ argument. Supply it with array( 'slug' => 'properties/location' ) and refresh your permalinks. Otherwise, it’s looking for the following:

mysite.com/property_location/office-space

Refer to @vancoders answer for the template solution.

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