Saks Global exits bankruptcy; changes name, slashes debt
Friday, July 10, 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 emerged from Chapter 11 bankruptcy protection on June 26, 2026, after nearly five months of restructuring and rebranded itself as Exemplar Luxury Group to signal a fresh start and renewed commitment to luxury retail excellence. The company achieved a nearly 75% debt reduction through the bankruptcy process while securing $500 million in new exit financing, with sufficient liquidity to drive long-term profitable growth. The restructured company reduced its store footprint from approximately 115 locations to just 49 stores, closing 62 off-price locations including 57 Saks OFF 5th stores and all five Neiman Marcus Last Call outlets. The new entity operates three flagship banners—Saks Fifth Avenue with 15 stores, Neiman Marcus with 33 locations, and Bergdorf Goodman—and is led by CEO Geoffroy van Raemdonck with a reconstituted board including representatives from investment firms Pentwater Capital Management and Bracebridge Capital.
Saks Global filed for Chapter 11 bankruptcy protection on January 14, 2026, about a year after completing its merger with Neiman Marcus, with the filing widely anticipated as the luxury conglomerate struggled financially and vendor relationships deteriorated due to past-due invoices. Eddie Bauer LLC filed for Chapter 11 bankruptcy on February 9, 2026, marking the end of the brand's brick-and-mortar presence with 175 locations set to close. Pat McGrath Cosmetics filed for Chapter 11 bankruptcy protection on January 22, 2026, following a lengthy private dispute between McGrath and a lender. Francesca's filed for Chapter 11 bankruptcy protection for the second time in less than a decade on February 5, 2026. Other retailers identified as high-risk for 2026 include Wayfair, ASOS, AMC Theatres, Walgreens, QVC Group, and J. Crew Group, with smaller companies facing disproportionate challenges compared to larger retailers during volatile economic times.
Bed Bath & Beyond has entered into a definitive agreement to acquire Fathom Holdings Inc., a national technology-driven real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings, in an all-stock transaction valuing Fathom at approximately $53.38 million. The acquisition accelerates Bed Bath & Beyond's vision to create the nation's first end-to-end homeownership platform by uniting Homeownership Transactions, Omnichannel Commerce and Home Services into a single homeowner ecosystem. Fathom's brands include Fathom Realty, the No. 17 U.S. brokerage by sales volume in 2025 with more than $15.7 billion in transaction volume, along with Encompass Lending, Verus Title, intelliAgent and Real Results. The combined platform is expected to provide Fathom with immediate access to millions of Bed Bath & Beyond customers at key moments in the homeownership journey, creating a seamless connection between home buying, financing, and furnishing, with the transaction expected to close in the second half of 2026.
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