Owners of commercial property located in Florida recently received some good news to help them market vacant retail, office and warehouse space. As the only state in the nation to levy sales tax on commercial property leases, including tenants’ base rent and other payments they make as a condition of their lease agreements, Florida has been at a competitive disadvantage when it comes to attracting out-of-state businesses. However, over the past few years, the state legislature has been making efforts to reduce the commercial rent tax rate and, therefore, decrease tenants’ occupancy costs. For 2020, Florida’s tax on commercial leases will be reduced to 5.5 percent, down from 5.7 percent in 2019, 5.8 percent in 2018 and 6 percent in 2017.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email email@example.com.