Simon poised to rake in millions more in rent thanks to Saks Global closures
Friday, August 14, 2026

The most immediate benefit of this tax repeal is pure, unadulterated cash flow. In commercial real estate, a few percentage points can translate into an incredibly heavy line item over a five- or ten-year lease term.
Prior to the full repeal, the state rate sat at 2.0%, plus local county surtaxes. For a retail tenant paying a total monthly rent of $15,000, that tax easily tacked on thousands of dollars in extra overhead every year. With the tax entirely gone, those funds are instantly returned to the business's operating capital. Business owners are already leveraging these sudden savings to fund storefront upgrades, ramp up marketing, or offset other rising operational hurdles like property insurance shifts.
A common misconception was that the lease tax only applied to base rent. In reality, the Florida Department of Revenue applied the tax to all consideration required under the lease.
In a standard Triple Net (NNN) lease, this meant tenants were paying sales tax on:
Base rent
Common Area Maintenance (CAM) fees
Property taxes and building insurance pass-throughs
Utility and management fees billed through the landlord
Because the repeal eliminates the tax on the entire real property lease framework, tenants are seeing relief across their entire monthly statement, not just their base occupancy costs.
While the tax is gone for current and future occupancy, business owners and accounting teams must look closely at how the transition is managed.
The Florida Department of Revenue dictates that taxability is strictly determined by the period of occupancy, not when the money changes hands.
Past Due Rent: If you are catching up on a balance or paying rent that belongs to an occupancy period prior to October 1, 2025, the old sales tax and local surtaxes must still be paid.
CAM Reconciliations: If your landlord issues a retroactive CAM adjustment or reconciliation billing for expenses incurred during early 2025, that adjustment is still subject to the sales tax rules that were active during that specific time.
By removing the unique penalty of a commercial rent tax, Florida has significantly lowered the barrier to entry for businesses looking to scale.
Retailers, medical operators, and restaurateurs who were previously hesitant to expand due to razor-thin margins now have a highly compelling reason to pull the trigger on a second or third location. The removal of this tax makes local commercial real estate layouts significantly more competitive with neighboring states, sparking a fresh wave of leasing activity in prime South Florida and Tampa Bay plazas.
The elimination of the commercial rent tax is one of the most pro-business legislative decisions in Florida's recent history. If you haven't reviewed your lease sheets or verified that your monthly invoicing has been updated to reflect the full repeal, now is the time.
Partnering with an experienced commercial brokerage ensures that your lease structures are fully optimized to take advantage of Florida's tax-free leasing environment, allowing you to maximize your savings and accelerate your business growth.
Florida Department of Revenue. Tax Information Publication (TIP No: 25A01-04): Sales Tax on Commercial Rentals Repealed.
Florida Senate. House Bill 7031: Relating to State Tax Administration and Repeals.
Greenberg Traurig LLP. Florida Legislature Repeals Sales Tax on Commercial Leases: Successor Liability and Compliance.
Saks Global's Chapter 11 bankruptcy filing has proven beneficial for Simon Property Group, which saw 1 million square feet of space vacated—almost entirely from Saks Off 5th closures—yet maintained occupancy levels equal to the end of Q1 as new tenants filled the space at higher rents. While Saks Off 5th had been paying $18 million in annual rent before ceasing payments after bankruptcy, Simon Property is confident new tenants will pay significantly higher rent, with initial base rent from new leases up 17% year-over-year through Q2 2026. Simon Property expects to collect $30 million in rent from new tenants filling just half of the closed Saks Off 5th stores in its portfolio, compared to the $18 million Saks Off 5th was previously paying. The landlord's $100 million investment in Saks Global's merger with Neiman Marcus gave Simon strategic leverage to exit or renegotiate unfavorable lease terms.
In Numerator's July 2026 Economic Sentiment Tracker of over 2,000 U.S. consumers, 39% identified rising prices as their top concern for the coming year, nearly matching the record high reached in May 2026. Prices for everyday household goods decelerated in July 2026, decreasing by 0.4% after a 0.7% increase in June, with prices up just 2.6% over the past 12 months as annual inflation cooled following three consecutive months of acceleration. Low-income and Gen Z consumers continue to experience higher levels of inflation for everyday household goods, as prices have increased 35.1% and 39.0%, respectively, for those groups since January 2018 versus the 33.2% national average. Quick-service restaurant prices have increased 53.9% since January 2018, well above the 33.2% rise across the overall consumer basket, and consumers are adapting by trading down what they buy and where they shop.
Digital Brands Group Inc. (NASDAQ: DBGI) announced a 1-for-40 reverse stock split of its common stock, effective July 24, 2026, at 12:01 a.m. Eastern Time, designed to raise the closing bid price of the company's stock above the $1.00 mark required for continued Nasdaq listing compliance. The stock currently trades at $0.64, down 93.56% over the past year, highlighting the urgency of the compliance measure. The reverse stock split will reduce outstanding common stock from approximately 23 million shares to approximately 575,000 shares, with every 40 shares of common stock automatically reclassified into one new share. In response to shareholder concerns, Digital Brands Group canceled 7.1 million pre-funded warrants and saw the expiration of 9.6 million cash warrants, eliminating a total of 16.7 million warrants.
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