The reduction and elimination of the tax on commercial leases continues to gain considerable support.

The Florida CCIM Chapter and active CCIMs , which represents more than 1,200 commercial real estate industry professionals, join the efforts of a number of industry groups and large associations including the 127,000 member Florida Realtors, the Miami Association of Realtors (more than 31,000 members), NAIOP, ICSC, and SIOR in support of the Governor’s 2014-2015 “It’s Your Money Tax Cut Budget,” which highlighted his commitment to eliminating $500 million in taxes and fees for the upcoming legislative session.

“The Florida CCIM Chapter is happy with Governor Scott’s initiative, as its members represent the leading commercial real estate brokers, lenders, developers and numerous other commercial real estate practitioners.  This proposed sales tax reduction will help to drive more companies to establish or expand their operations in Florida and promote community development and jobs,” commented Florida CCIM Chapter President Peter J. Barnett, CCIM.

Florida is the only state that imposes a state-wide sales tax on commercial leases.

A state tax of six percent (6%) is imposed on the total rent charged under the lease, however the Department of Revenue (DOR) has taken the position that any payment required to be paid as a condition of occupancy under a commercial lease is taxable as rent. This means that in addition to the base rent being taxed, “passed through expenses” including building insurance, common area maintenance, and ad valorem real estate taxes themselves are taxed (double taxed). In addition, individual counties and taxing authorities may impose additional taxes, such as Miami-Dade County, which charges one percent (1%) additional, for a total of seven percent (7%).

Florida Statute §212.031 addresses sales tax on leases and Florida’s DOR interprets the provisions in Fla Administrative Code Rule 12A-1.070.

It is argued that this additional tax places Florida at a competitive disadvantage when attracting new businesses to the state. Opponents contend that the tax forces landlords to charge more for rent than comparable facilities just across state lines. In addition, it increases their record keeping burdens as they become tax collectors for the state.

Governor Rick Scott announced on January 28th that his budget proposes reduction of the tax on commercial leases by one-half of a percentage point for a savings of approximately $104-million the first year. According to all research, the impact of this reduction would be $500-million gain in terms of jobs and economic activity.

Additionally, two bills filed for the 2014 Florida legislative session push for more and would begin a complete phase out of the tax.  SB 176 by Sen. Dorothy Hukill (R-Port Orange), Senate Finance and Tax Chairwoman, and HB 11 by Rep. Greg Steube (R-Bradenton) would lower the rate from 6 percent to 5 percent.

“With the support of the governor, these efforts are gaining considerable traction. Compelling cases have been made that the increased economic activity more than offsets the decreased collections,” said John Dohm, CCIM, SIOR, CFP. 

Dohm, a licensed real estate broker for more than 25 years, tirelessly analyses important issues affecting the commercial industry.

John currently serves on the board of the CCIM Miami District, is past president of the CCIM Broward Chapter and served for several years on the board of the Florida CCIM Chapter.

Dohm also served as President of the Realtors Commercial Alliance of MIAMI in 2012 and is one of fewer than 700 individuals in the world to hold both the CCIM and SIOR (Society of Industrial and Office Realtors) designations and the only one to have also been awarded the CFP (Certified Financial Planner) certification in addition to all major securities licenses.

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A CCIM (Certified Commercial Investment Member) is a recognized expert in the commercial and investment real estate industry. The CCIM lapel pin is earned after successfully completing a designation process that ensures CCIMs are proficient not only in theory, but also in practice. This elite corps of CCIMs includes brokers, leasing professionals, investment counselors, asset managers, appraisers, corporate real estate executives, property managers, developers, institutional investors, commercial lenders, attorneys, bankers, and other allied professionals. The mission of the Florida CCIM Chapter is to provide the highest quality of marketing and networking opportunities, services, and education that will enhance our members’ ability to conduct business successfully. For more information, please visit http://flccim.com/ or contact Florida CCIM Chapter President Peter J. Barnett, CCIM at 813.351.2791.

Marcus & Millichap Real Estate Investment Services has received the exclusive listing for a 44,572 square foot block of land and a 31,294 square foot marina with 36 slips fronting the Miami River in Miami.

The impressive development opportunity is priced at $7 million.

Ryan Shaw and Scott Sandelin, Senior Associates in Marcus & Millichap’s Miami office, are representing the seller, a limited liability company from Miami.

The investment opportunity consists of multiple land parcels and marina totaling approximately 75,866 square feet along the Miami River. The property is separated by NW 22nd Avenue with the residential development on the west side and the marina to the east. The land allows for up to 362,000 buildable square feet under Miami21 zoning of T6-8-O which should fit a minimum of 105 units over eight floors.

“This is an excellent opportunity for a developer to acquire a site on the Miami River with an adjacent marina.  The Miami River and its surrounding neighborhoods have become magnets for all kinds of energy and activity over the last couple of years. Private sector developments along the Miami River are at an all-time high. The addition of new restaurants, retail, and apartments further west on the river make this an excellent opportunity to capture the future of what the Miami River has to offer,” says Shaw.

The land parcels are located at 2190 NW North River Drive in Miami.

 

As you determine ways to make your apartment complex more appealing to tenants, you should pay attention to the latest trends when it comes to outdoor spaces.

More specifically, take note of what the American Society of Landscape Architects found when they conducted their Residential Landscape Architecture Trends survey for 2013. Then consider using these findings to your advantage as you work to improve your property.

Opportunities to Cook and Entertain Outdoors Top the List
A whopping 96% of Americans surveyed said they wanted grills outside. This was closely followed by complete outdoor living spaces, including outdoor kitchens and areas to entertain guests. If your apartment complex does not yet have a built-in barbecue area, or grills at the very least, you might be missing out on tenants who value livable outdoor spaces.

Seating is equally important according to the survey results, so make sure you have tables, chairs, or even basic picnic tables set up around the apartment complex. Installing some fire pits or outdoor fireplaces may also be the key to satisfying your tenants, according to 97% of the survey respondents.

Sustainability Matters When It Comes to Apartment Landscaping
More people care about sustainable outdoor spaces than you might have thought, and that includes landscaping. In fact, about 94% of people surveyed said they liked low-maintenance landscapes. Of course, in an apartment complex, the amount of maintenance might not directly affect the tenants, but it may affect your landscaping bill. Choosing plants that are native to the area can reduce the amount of work required to keep them healthy, and this move would please 87% of the survey respondents, too.

Nearly as many people also like the idea of having gardens that grow fruits and vegetables. In fact, more apartment landscaping plans these days are featuring gardens as a major part of their sustainable outdoor spaces. You can offer one or even a few courtyard gardens, or even window boxes for tenants to grow their own food. Either way, this apartment landscaping can improve the quality of life in your complex. It often even increases the length of each tenant’s stay, since many people grow quite attached to their gardens after putting in hours of work to grow food.

Lighting and Installed Seating Are Also on the Minds of Many Tenants
About 95% of those surveyed claimed lighting was important to them in an outdoor space. After all, this makes it possible for tenants to cook dinner outside as the sun goes down or even simply feel safer taking walks at night. Considering how much people now value sustainable outdoor spaces, you should be sure to use energy-efficient or even solar lighting with timers and sensors to help keep light pollution to a minimum.

Another common desire for outdoor space is the presence of installed seating. This ranges from simple ledges and boulders to installed benches. You can install what you think would look best in your apartment complex, again paying attention to sustainability by using eco-friendly materials that can stand up to your city’s climate for years.

Outdoor Recreation Amenities Are Appreciated in Modern Apartments
You might be surprised to find that outdoor recreation amenities, such as pools and tennis courts, garnered only 76% of the vote in this survey. In fact, more people – about 82% – thought having weatherized chairs outside was more important. That means the ability to cook outside and sit comfortably, perhaps in front of a fire pit, is more important to many Americans than access to a pool.

Of course, many apartment complexes are still expected to have such fun amenities, especially in warmer areas. However, apparently you should focus on getting grills and seating set up first if your apartment landscaping is missing these features. After all, sustainable outdoor spaces are of great importance to many tenants.

 

Source: Green Property Management

U.S. mayors are expecting to significantly increase investment in energy technologies over the next five years, according to a new survey of nearly 300 cities.

The survey, Energy Efficiency and Technologies in America’s Cities, indicates that mayors plan to make energy-efficient lighting technology, LEDs as the primary example, a top priority over the next two years.  LED and energy-efficient lighting was also overwhelmingly rated as the “most promising” technology for reducing city energy use and carbon emissions, according to 82% respondents.

In addition to lighting, retrofitting public buildings also ranked as a top priority in improving the energy efficiency of city infrastructure. Significantly, mayors expect to use their own local resources, followed by partnerships with the private sector, as the sources of financing these technologies. And in terms of the actual deployment of new technologies, survey findings reveal that more than seven in ten mayors believe their local utilities are now their city’s most important partner in doing so.

The full list of technologies that are receiving top priority are:

  1. LED/energy-efficient lighting: 29%
  2. Solar PV systems: 19%
  3. Building retrofits: 18%
  4. Renewable energy: 8%
  5. CNG fueling: 7%
  6. EV charging stations/hybrid vehicles: 5%
  7. Low-energy buildings: 4%
  8. Smart grid: 3%

Of note, survey results also indicate that because of recent weather events and associated power outages, three in four cities have developed plans to keep vital city services operating during sustained outages, and within three years, nearly 90% of all cities surveyed expect to have such plans in place.

The survey was conducted by the United States Conference of Mayors in conjunction with Philips. The full report can be found at usmayors.org.

 

Source:  Buildings