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100% Bonus Depreciation Is Back: What CRE Investors Need to Know in 2025
Placed a building in service after January 19? You’ve got reason to smile. In a legislative twist that caught even seasoned investors off guard, Congress passed the One Big Beautiful Bill Act (OBBBA) in July 2025—an ambitious piece of tax policy that brought back full 100% bonus depreciation for qualified property placed in service on or after January 20, 2025. For commercial real estate investors navigating an already complex tax landscape, this wasn’t just noise from Capitol Hill. It’s a real shift—restoring a powerful tool for accelerating deductions and shaping after-tax cash flows. A Second Wind for Full Expensing Bonus depreciation, at its core, isn’t new. Originally championed under the Tax Cuts and Jobs Act (TCJA), the provision gave investors the option to immediately expense 100% of certain asset costs rather than depreciating them over time. That benefit started phasing down in 2023, prompting many firms to adjust strategies and timing. The OBBBA effectively hit the reset button. Property that qualifies—and is placed in service on or after January 20, 2025—can now be fully depreciated in year one. Property placed into service between January 1 and January 19, however, remains stuck under the 40% phase-down rule. That 19-day window has become an odd tax limbo. “We had clients rushing projects in early January who ended up just missing the mark,” says one Florida ROI partner. “Now, everyone’s scrutinizing service dates like it’s a closing deadline.” What Qualifies—and What Doesn’t Let’s be clear: This isn’t a free-for-all. Entire commercial buildings are still subject to standard 39-year MACRS treatment. But several asset classes are now prime candidates for accelerated depreciation: To properly carve out these items, most investors will turn to a cost segregation study. These engineering-driven reports break down construction costs, allocating line items to depreciation-friendly buckets. A Quick Math Example Say you just placed a $5 million medical office building into service on February 1, 2025. A cost segregation study identifies $1.5 million in personal property and QIP. Under the reinstated rule, that $1.5 million doesn’t trickle down over years. It’s expensed now. That’s not just a line on a tax return—it’s a liquidity lever. Why This Matters for CRE Strategy Timing has always mattered in CRE, but 2025 makes that clearer than ever. Projects completed after January 19 are suddenly more tax-efficient than those barely squeezed in weeks earlier. Bonus depreciation also offers flexibility. Whether you’re repositioning assets or adding value through renovations, immediate write-offs can tilt returns in your favor—especially in higher-rate environments. “We’re advising clients to revisit underwriting assumptions,” says a tax specialist working with Florida ROI. “What looked like a 6.5% yield might now push closer to 8% once you account for year-one tax benefits.” What Smart Investors Should Do Now Experience from the Ground At Florida ROI, we’ve already worked with clients who saw significant swing in project viability purely due to bonus depreciation reinstatement. One Tampa-based investor delayed their interior build-out just long enough to qualify under the new effective date—and ended up writing off nearly 30% of their project costs in year one. The decision wasn’t just smart. It was strategic. Conclusion: A Policy Shift Worth Acting On In a sector where returns often hinge on timing, 100% bonus depreciation is no longer a fading benefit—it’s back, and it’s potent. The window is wide open for CRE investors who know how to use it. But like any tax advantage, it rewards the proactive, not the passive. If your project went into service after January 19, don’t leave money on the table. Work with your advisors, recheck your allocations, and make sure your capital stack reflects today’s tax realities. For tailored guidance on maximizing bonus depreciation in your next investment, connect with the team at Florida ROI. Frequently Asked Questions Q: What types of commercial real estate qualify for 100% bonus depreciation?A: Only certain components qualify—not entire buildings. Eligible assets include interior improvements (QIP), personal property (like furniture and fixtures), and land improvements (like paving and fencing). The building’s structural shell does not qualify. Q: How do I know if my property is eligible under the 2025 changes?A: The key is the in-service date. If your property was placed in service on or after January 20, 2025, and includes qualifying assets, it likely qualifies. A cost segregation study can help confirm and quantify those assets. Q: Should I invest in a cost segregation study for smaller properties?A: In many cases, yes. Even mid-size projects can unlock significant deductions. The cost of the study is often far outweighed by the tax savings—especially under the reinstated 100% bonus rule. The post 100% Bonus Depreciation Is Back: What CRE Investors Need to Know in 2025 appeared first on Tampa Commercial Real Estate | Property Brokers.
Posted 22 July 2025 | 12:09 pm

Florida Eliminates Sales Tax on Commercial Rent: What It Means for Business — and Local Budgets
Starting October 1, 2025, Florida will fully repeal the sales tax on commercial real estate leases. This includes both the 2% state tax and any discretionary local surtaxes. The change, enacted through House Bill 7031 and signed into law on June 30, 2025, makes Florida the only state to completely eliminate a sales tax on commercial rent. Benefits for Businesses For tenants leasing office, retail, or industrial space, this repeal offers direct savings. Until now, businesses were often paying a combined 3–3.5% in state and local sales tax on rent. For example, a tenant paying $10,000 per month in rent could save $2,400 to $3,600 annually depending on location. This reduction in operating costs is expected to particularly benefit startups, small businesses, and service-based companies that rely on leased space to operate. State and Local Revenue Impact The fiscal impact is significant. According to the Florida Senate’s official fiscal analysis, the repeal is expected to result in: These numbers are detailed in the Senate’s Appropriations Committee analysis of HB 7031 (source). Other sources, such as Florida Realtors and business advocacy groups, have projected the annual relief to tenants at over $2.5 billion. Local Government Challenges While this is a clear win for the business community, municipalities across Florida will be forced to contend with the loss of nearly half a billion dollars annually in local revenue. This funding has historically supported infrastructure, transportation, economic development programs, and general municipal services. Since the repeal includes surtaxes, local governments will not be able to reimpose these taxes independently. Unless the state provides compensatory funding, municipalities may need to consider budget cuts or explore new revenue sources. What Landlords and Tenants Should Do With the repeal date approaching, both landlords and tenants should take action to ensure compliance and avoid unnecessary tax collection: Final Thoughts This repeal marks a major shift in Florida’s tax landscape and will provide welcome relief to commercial tenants across the state. However, the loss of nearly $5 billion in combined revenue raises serious questions about how state and local governments will fill the gap. As this change approaches, commercial landlords, tenants, and real estate professionals should prepare their documents and processes accordingly—and monitor any new policy developments at the state level. Frequently Asked Questions Q: When will Florida eliminate the sales tax on commercial rent?A: Florida will fully repeal the sales tax on commercial leases starting October 1, 2025. This includes both the state and local surtaxes. Q: How much can businesses save from the repeal of commercial rent tax in Florida?A: Businesses could save between $2,400 and $3,600 annually on a $10,000 monthly lease, depending on local surtaxes previously applied. Q: What should landlords and tenants do to prepare for the Florida commercial rent tax repeal?A: They should update lease agreements, invoicing systems, and file final tax returns correctly to remain compliant with the Florida Department of Revenue. Need Help Navigating the Change? If you have any questions or need assistance preparing for the sales tax repeal, our property management department is well versed in the complexities of Florida’s commercial lease sales tax. We’re happy to help you update your leases, billing systems, and compliance procedures ahead of the October 1, 2025 deadline.You can find the complete legislative analysis in the Florida Senate’s official report on House Bill 7031. The post Florida Eliminates Sales Tax on Commercial Rent: What It Means for Business — and Local Budgets appeared first on Tampa Commercial Real Estate | Property Brokers.
Posted 2 July 2025 | 4:36 pm

Tampa Bay CRE Update: 4 Recent Deals Making Waves
The dog days of Summer are upon us and  in the Tampa Bay area, a mix of institutional acquisitions, retail refits, adaptive reuses, and community-driven developments are shaping the landscape. Here are a few deals we think could be of interest to you:  1. Caffé Paradiso at St. Croix Plaza 4205 S MacDill Ave, Tampa, FL 33611 In March 2025, South Tampa’s beloved Caffé Paradiso quietly changed hands as part of the broader acquisition of an assemblage including St. Croix Plaza by placemaking firm Of Place. Known for their involvement in Water Street Tampa, Of Place is expected to revitalize this neighborhood center with a focus on pedestrian-friendly amenities and local flavor. Of Place paid $7.8 million for the properties, according to Hillsborough County property records. This deal underscores how community-scale retail continues to attract strategic institutional buyers. Expect enhanced outdoor seating, modernized tenant mixes, and curated experiences for MacDill Ave regulars. 2. Lakeview at Hidden River – Suburban Office 8875 Hidden River Parkway, Tampa, FL 33637 Sold on April 30, 2025 for $7.8 million, this 133,201 SF office building was acquired by Farley White Interests, which now owns over 1.2 million SF in the area. Hillsborough County property records show it sold for $7.8 million, which is significantly less than the price the last time the office building changed hands. Situated in the Hidden River Corporate Park, the property reflects continued institutional confidence in well-located suburban office campuses with strong tenant amenities, albeit at reduced prices. 3. The Village at Causeway – Neighborhood Retail Center 10284 Causeway Blvd, Brandon, FL 33511 Closed on May 15, 2025 for $12.9 million, this fully-leased retail center shows the continued strength of strip retail in high-traffic corridors. Brokered by Marcus & Millichap, the deal saw investor competition for stabilized assets with long-term tenants and solid foot traffic. Street-level retail continues to perform well in high-traffic areas with either strong pedestrian or vehicle exposure. 4. Central Park Food Hall – Coming Soon to Downtown St. Pete 551 Central Avenue, St. Petersburg, FL 33701 Central Park Food Hall, a long-awaited project from chef and entrepreneur Natalia Levey and her team at Hi Hospitality Group, is finally nearing completion after several delays. Originally slated to open in 2021, the five-story, 27,700-square-foot development is now expected to debut later in 2025. Transforming the historic former Dome Grill site on Central Avenue, the food hall will feature 13 curated food and beverage concepts—including Kojo Wok, The Winfield speakeasy, and a members-only rooftop club. Already generating significant buzz, Central Park Food Hall exemplifies adaptive reuse and experiential retail, and stands as a powerful symbol of how food halls are reshaping urban cores and attracting both community interest and investor attention. Final Thoughts Tampa Bay continues to show resilience in the commercial real estate space, especially through community-focused projects and adaptive reuse. Whether it’s a neighborhood retail revival in Brandon or a high-visibility food hall in downtown St. Pete, investor activity remains cautiously optimistic. Looking to stay ahead of CRE trends or invest in properties with long-term value? Contact Florida ROI today for personalized investment guidance backed by local expertise and proven results. Frequently Asked Questions Q: What types of commercial real estate deals were recently completed in Tampa Bay?A: The latest deals include institutional acquisitions, suburban office purchases, neighborhood retail center sales, and an upcoming food hall development in downtown St. Petersburg. Q: Who acquired St. Croix Plaza and what are the plans for it?A: Placemaking firm Of Place acquired the plaza and plans to revitalize it with pedestrian-friendly features and a curated tenant mix, enhancing the local experience on MacDill Ave. Q: What does the Lakeview at Hidden River sale indicate about the suburban office market?A: Despite a soft market, the $7.8 million sale to Farley White Interests shows continued institutional confidence in well-located suburban office campuses with strong tenant amenities. The post Tampa Bay CRE Update: 4 Recent Deals Making Waves appeared first on Tampa Commercial Real Estate | Property Brokers.
Posted 25 June 2025 | 5:43 pm

Rising Demand for Dunedin Commercial Real Estate Driven by Tourism Growth
Dunedin, Florida, is gaining attention as a prime location for commercial real estate investment. With its scenic waterfront, small-town charm, and growing tourism industry, the city is seeing increased demand for commercial properties. As more visitors explore Dunedin’s attractions, businesses are thriving, creating new opportunities for investors looking to capitalize on a strong and expanding market. The Rise of Dunedin Tourism: An Overview Dunedin has secured its place as a prime destination for tourists seeking a quieter yet vibrant retreat from bustling nearby cities. Highlights such as the Dunedin Marina and an impressive selection of local breweries and restaurants have successfully attracted a diverse audience. Statistics indicate that visitor numbers have consistently grown over the past five years, leading to increased foot traffic and heightened demand for commercial properties. According to the Dunedin Chamber of Commerce, the tourism sector contributed approximately $63 million to the local economy in 2022, reflecting an upward trend. Local government initiatives aimed at promoting cultural events and attractions further enhance Dunedin’s appeal, increasing commercial viability. Driving Factors Behind the Increasing Demand for Commercial Space Real-World Case Studies: Investment Opportunities Case Study: The Growth of Dunedin’s Brewery Scene Dunedin’s thriving craft beer industry has significantly benefited from the city’s rising tourism. As one of Florida’s most brewery-dense towns per capita, Dunedin has cultivated a strong reputation for unique, locally crafted beers that attract both residents and visitors. The presence of breweries near key tourist areas, such as the Dunedin Marina and Main Street, has contributed to increased foot traffic and economic activity. According to a 2023 report from the Brewers Association, Florida’s craft beer industry contributes over $3.6 billion annually to the state’s economy, with Tampa Bay being one of the leading regions for brewery-driven tourism. Similarly, a study from Visit Florida highlights that food and beverage tourism remains one of the top motivators for travelers, further driving demand for commercial spaces in high-foot-traffic areas. A prime example is Dunedin Brewery, Florida’s oldest microbrewery, which has consistently experienced strong visitor numbers due to its proximity to downtown attractions. Other breweries, such as 7venth Sun Brewery and Woodwright Brewing Co., have also reported steady growth, leveraging both local patronage and seasonal tourism. For commercial real estate investors, these trends underscore the demand for spaces catering to the hospitality and entertainment sectors. Properties near Dunedin’s tourism hotspots continue to attract businesses eager to capitalize on the city’s strong visitor economy, making them a lucrative investment opportunity. Case Study 2: Downtown Dunedin Revitalization The Downtown Dunedin Revitalization Project demonstrates effective urban planning that has rejuvenated commercial spaces. Investors seeking retail properties have found substantial opportunities, particularly in mixed-use developments. Enhanced public spaces and pedestrian-friendly locales have attracted both tourists and local residents, resulting in increased foot traffic and revenue. Case Study 3: Historic Building Conversions Dunedin’s commitment to preserving historical architecture has led to numerous conversions of old buildings into modern commercial spaces, such as art galleries and specialty shops. Investors aiming to blend historic charm with contemporary commerce experience substantial returns. The Heritage District, characterized by unique transformations, has become a hotspot for consumer engagement. Making the Investment: What Investors Should Know For commercial real estate investors, understanding the dynamics of Dunedin commercial real estate is crucial. Given the upward trajectory of Dunedin’s growing tourism sector, the following considerations are essential for making informed investments: Market Research Understanding market trends is vital. Investors should analyze tourist demographics, spending habits, and seasonal trends to identify profitable opportunities. Real-time data can highlight which commercial spaces yield the highest returns. Location, Location, Location The classic real estate mantra holds true: location matters. Properties near popular attractions or well-trafficked areas likely experience quicker rental increases and lower vacancy rates.  Community Engagement Investors should actively engage with community initiatives, enhancing their local presence while aligning with resident interests. Supporting community events or forging partnerships with local businesses can strengthen brand loyalty and foster a positive public perception. Incorporating Sustainability Adopting sustainable building practices not only attracts environmentally conscious consumers but also reduces operational costs. As sustainability becomes a priority, investing in energy-efficient properties translates into long-term savings and increased value. Future-Proofing Prepare for inevitable market changes. Adaptive reuse and flexible space planning will allow properties to meet evolving demands, safeguarding investments against market fluctuations. Final Thoughts Dunedin’s thriving tourism scene is undeniably linked to the growing demand for commercial spaces, creating unique investment opportunities for savvy real estate investors. By capitalizing on Dunedin’s dynamic environment through strategic planning and market insight, investors can yield robust returns in a flourishing community. With a proven growth trajectory and a vibrant atmosphere, stepping into Dunedin commercial real estate is a prudent choice for investors seeking to blend community impact with financial success. As you explore your commercial real estate options, consider the wealth of opportunities available in Dunedin. Ready to capitalize on Dunedin’s burgeoning commercial real estate market? Contact us today to explore investment opportunities that align with your financial goals. Maximize your investment potential—consult Florida ROI for specialized real estate solutions. Frequently Asked Questions Q: What types of commercial spaces are most in demand in Dunedin?A: Popular commercial spaces in Dunedin include retail establishments, restaurants, and mixed-use developments that cater to both locals and tourists. Q: How has the influx of tourism impacted commercial rents in Dunedin?A: The growth in tourism has generally led to increased demand for commercial rental spaces, resulting in higher rental prices during peak seasons. Q: What are the legal considerations for investing in Dunedin commercial real estate?A: Investors should be aware of local zoning laws, property taxes, and any specific regulations related to commercial property use to ensure compliance and protect their investments. Q: Are there subsidies or incentives for businesses located in Dunedin?A: Yes, local government programs may provide incentives for businesses contributing to the city’s economic growth, including grants or tax breaks for specific development projects. Q: How can I find reliable commercial real estate listings in Dunedin?A: Utilizing online platforms, working with local real estate agents, The post Rising Demand for Dunedin Commercial Real Estate Driven by Tourism Growth appeared first on Tampa Commercial Real Estate | Property Brokers.
Posted 23 June 2025 | 4:01 am

Key Trends and Insights in Dunedin Commercial Real Estate Market
The demand for office space in Dunedin is shifting, making it important for investors to stay informed about key trends in the local commercial real estate market. With its scenic waterfront, strong economy, and growing appeal to businesses, Dunedin has become an attractive location for companies looking to establish or expand their presence. This article provides an in-depth look at the current market conditions, notable developments, and valuable insights to help guide investment decisions. Current Landscape of Dunedin’s Commercial Real Estate Market Dunedin, Florida, strategically located near major metropolitan areas, is an attractive destination for businesses of various sizes. The city’s robust economy, combined with a skilled workforce, positions it as an appealing choice for companies seeking both profitability and quality lifestyle for their employees. Recent data from the U.S. Census Bureau indicates that Dunedin’s population is steadily rising, suggesting a potential increase in demand for office spaces as new businesses flock to the area. The Dunedin commercial real estate market features a versatile range of office spaces, from small co-working environments to larger corporate offices. Historically known for its strong occupancy rates, the market is witnessing evolving preferences as remote and hybrid work models gain popularity.  Emerging Trends in Dunedin Commercial Office Space Usage Real-World Case Studies in Dunedin Commercial Real Estate Case Study 1: 333 Main Street This office building underwent significant restoration, transforming a traditional structure into a modern workspace that caters to evolving business needs. The property introduced flexible leasing options and modernized amenities, driving demand. This case exemplifies how adapting to market trends can significantly enhance a property’s appeal and mitigate vacancy risks. Case Study 2: The Hub Co-Working Space Located in Dunedin, The Hub is a co-working space designed to support the local business community, entrepreneurs, startups, remote workers, and visitors. It offers a well-appointed workspace, conference and meeting rooms, and a boardroom that can accommodate up to 24 people. The Hub exemplifies how modern, flexible workspaces can attract a diverse range of businesses and professionals, fostering collaboration and innovation within the community. Investment Opportunities in Dunedin Commercial Real Estate Investors can capitalize on diverse opportunities within Dunedin’s commercial real estate landscape: Final Thoughts For investors considering diversifying their portfolios, Dunedin’s commercial real estate market presents abundant opportunities for growth and return on investment (ROI). By staying attuned to market trends and identifying the right properties, you can position yourself favorably in this competitive landscape. Whether you’re a seasoned commercial real estate investor or a newcomer, Dunedin’s burgeoning economy and vibrant community await your investment. Dunedin’s commercial real estate market is ripe with potential for investors willing to navigate the changing landscape of office space. By acknowledging trends such as increased flexibility, sustainability, and technological integration, you can position your investments to capitalize on the city’s growth. Invest wisely and explore the opportunities that Dunedin’s commercial real estate market offers. The combination of stunning views, a vibrant community, and robust economic growth cannot be overlooked. Make your move and discover the promising avenues in Dunedin’s commercial real estate sector today.  Get expert guidance and customized real estate solutions from Florida ROI today. Frequently Asked Questions Q: What are the current vacancy rates for office spaces in Dunedin?A: As of recent reports, vacancy rates in Dunedin are approximately 8%, reflecting a competitive market driven by increased demand for flexible office spaces. Q: How has the pandemic changed the office space market in Dunedin?A: The pandemic has accelerated the demand for flexible work arrangements, resulting in a decline in traditional long-term leases and an increase in co-working spaces. Q: Are there significant tax incentives for real estate investors in Dunedin?A: Yes, Florida offers various tax incentives for real estate investments, including low property taxes and no state income tax, making it appealing for commercial real estate investors. Q: What types of businesses are predominantly moving into Dunedin’s office spaces?A: A mix of tech startups, creative agencies, and health-service-oriented companies are increasingly relocating to Dunedin due to its strategic location. Q: Does Dunedin have a supportive business environment for startups?A: Absolutely. Dunedin offers numerous resources, including networking events, incubators, and local government initiatives designed to support startups and small businesses. The post Key Trends and Insights in Dunedin Commercial Real Estate Market appeared first on Tampa Commercial Real Estate | Property Brokers.
Posted 18 June 2025 | 4:01 am