SALT Cap Up, Tax Breaks Back—The ‘Big Beautiful Bill’ Is a Game-Changer for All Commercial Real Estate Owners
Marc Perlof • July 17, 2025
Hey, Retail Real Estate Rockstars!
The brand-new “Big Beautiful Bill” (H.R. 1) just rewired the tax rules. Here’s five headline changes—and exactly when they start or end—that can boost (or bruise) your next retail property move.
Key Tax Breaks & Deadlines
- 100 Percent Bonus Depreciation – Applies to assets bought after January 19, 2025 and is permanent (no sunset).¹
- Opportunity Zones 2025 – Program is now permanent; new zones certified July 2025 (active January 1, 2027) and each zone lasts 10 years.²
- Low Income Housing Tax Credit Expansion – Extra 12 % allocation begins January 1 , 2026 and stays in force permanently.³
- SALT Deduction Cap Increase 2025 – Cap jumps to $40k for tax years 2025–2029; snaps back to $10k in 2030.⁴
- Energy Tax Credit Repeal for Commercial Buildings (§ 179D) – Deduction stays alive until projects starting after June 30, 2026; then it ends.⁵
What You Need to Know
- 100 Percent Bonus Depreciation is forecast to add $280 B in first-year deductions nationwide over the next decade.¹
- LIHTC boost could create 80,000 extra affordable rentals between 2026-2035.³
- SALT cap hike will reduce federal taxes for about 13 M households, many of them pass-through property owners.⁴
- Only 24 months remain to lock in § 179D on new efficiency projects before repeal.⁵
Fast Data Points
- The LIHTC “bond test” drops to 25 % of project cost, letting more deals qualify for 4 % credits.³
- Raising the SALT cap is projected to cost $350 B over ten years.⁴
- OZ investors can still hit a 15 % basis boost after a 10-year hold under the permanent rules.²
Why This Matters to Retail Owners
- Instant Expense Power – Spend $500k on tenant improvements in 2025 and deduct all $500k that same year.¹
- Long-Game Site Selection – A store inside a new OZ can defer gains and boost basis—perfect for 10 to 15 year strategies.²
- Affordable-Mixed Play – Add LIHTC apartments above ground-floor retail and tap into the larger 2026 credit pool.³
- Personal Tax Relief – With the SALT cap set at $40k, California LLC owners can fully deduct state taxes for five years.⁴
- Green Upgrade Countdown – Pull permits for lighting or HVAC upgrades before July 2026 to keep the § 179D deduction.⁵
Want these rules working for your rent roll, refinance, or next acquisition? Call or DM me for more information—let’s get a head start on your 2025/2026 real estate strategy before the competition wakes up.
Which of these changes will shift your next leasing or investment move first—instant write-offs, permanent OZs, bigger housing credits, SALT relief, or locking in green deductions?
Keep an eye out in the coming weeks—we’ll be diving deeper into each of these game-changing updates.
#RetailRealEstate #CREInvesting #TaxStrategy #OpportunityZones #BonusDepreciation
Footnotes:
1. H.R. 1 (2025), § 70301; KBKG, “OBBB Tax Bill Makes 100% Bonus Depreciation Permanent – What You Need to Know” (July 9 2025).
2. H.R. 1 (2025), § 70421; Seyfarth Shaw LLP, “7 Key Changes to the Qualified Opportunity Zone Incentive Under the One Big Beautiful Bill Act” (July 7 2025).
3. H.R. 1 (2025), § 70422; Nelson Mullins, “One Big Beautiful Bill Act Signed into Law – What Made It Into the Final Bill?” (July 7 2025).
4. H.R. 1 (2025), § 70120; Bipartisan Policy Center, “How Would the 2025 House Tax Bill Change the SALT Deduction?” (June 9 2025).
5. H.R. 1 (2025), § 70507; Frost Brown Todd, “One Big Beautiful Bill Act Cuts the Power: Phase-Outs, Foreign-Entity Restrictions, and Domestic Content in Clean-Energy Credits” (July 4 2025).
6. Bipartisan Policy Center, “How Would the 2025 House Tax Bill Change the SALT Deduction?,”
supra note 4.
7. Nelson Mullins, “One Big Beautiful Bill Act Signed into Law – What Made It Into the Final Bill?,”
supra note 3.
Disclaimer: I am not a tax accountant, CPA, or tax attorney. Always confirm these details with your own qualified professional before making tax or investment decisions.
© 2025 Marc Perlof Group. All rights reserved.
Retail Real Estate 2026: Why Some Properties Stay Strong While Others Struggle By Marc Perlof | MarcRetailGuy February 2, 2026 If you own retail real estate, here is what just changed. Retail real estate in 2026 is no longer one market. It has split into clear winners and clear losers. Owners who understand this are protecting value. Owners who do not are feeling pressure. The biggest change is how people spend money when things feel uncertain. Interest rates are higher. Costs are up. Households are more careful. That shift shows up first at the property level. Some retail feels stress faster than others. Lifestyle centers, nightlife areas, entertainment districts, and tourist retail depend on optional spending. When people cut back, visits drop. Sales slow. Tenants push back on rent. Vacancies last longer. This is not a crash. It is a pressure issue tied to spending people can delay. Other retail performs differently. Grocery anchored centers, pharmacies, medical and dental, quick-service food, auto service, and personal care are built around daily habits. People cut wants before needs. That makes income steadier and easier to support in a cautious market. Recent retail market reports show this split clearly. National retail vacancy stayed fairly stable through late 2025, mostly in the mid-5 percent to high-6 percent range, with necessity-based centers performing better than discretionary locations¹. Leasing slowed in 2025, with longer decision times and more rent pushback, especially from non-essential tenants². Buyers are still active, but they are more careful. They now focus on tenant quality, lease length, and operating costs more than rent growth³. What retail owners should focus on right now • Daily-needs tenants reduce risk. Properties with grocery, medical, pharmacy, and quick-service food see more stable rent and fewer concession requests. That helps protect sale price and lender support in slower markets¹. • Grocery-anchored centers sell faster. Buyers still want these assets because traffic is predictable and costs are easier to pass through. These deals tend to fall apart less often³. • Discretionary retail carries pricing risk. Properties tied to optional spending face longer vacancies, rent resistance at renewal, and wider gaps between buyer and seller pricing. Waiting too long to adjust can hurt value, not just cash flow². One thing is becoming clear in early 2026. The market is not pricing retail as one category anymore. It is pricing risk. Two properties with the same income can be worth very different amounts based on tenant mix, lease terms, and rising expenses. Owners who understand this protect equity. Others only see the gap after a buyer or lender points it out. The takeaway is simple. Retail real estate in 2026 is about quality, not hype. Stable income matters. Lease terms matter. Tenant mix matters. Insurance and operating costs matter. Owners who match strategy to how their tenants actually perform stay in control. Owners who rely on old assumptions end up reacting. If you want a clear, property-specific review of how buyers and lenders would view your retail asset today, I can prepare a short market positioning summary. No templates. No guesses. Just how your property would really trade in this market. Ask yourself this. Is your property built around spending people can delay, or spending they rely on every week? #RetailRealEstate2026 #RetailMarketOutlook #EssentialServicesRetail #GroceryAnchoredRetailCenters #DiscretionaryRetailProperties
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By Marc Perlof | MarcRetailGuy January 26, 2026 If you own retail real estate, here’s what just changed for you. 2026 is shaping up to be a year where retail property owners need to pay attention. Not to fear. Not to headlines. To real signals in the market. There is more global and domestic uncertainty right now. Conflicts overseas, trade tension, higher government debt, and political changes in the U.S. all affect interest rates, insurance markets, and investor behavior. This does not mean panic. It means owners need clear, reliable information. Here is where the retail market stands today. Local retail remained steady through late 2025. In Los Angeles County, vacancy ranged from about 5.6 to 6.9 percent in the second half of the year¹²³. That tells us demand is still healthy, even as some tenants adjust space needs or renew leases at new rent levels. Leasing activity slowed in some areas. Spaces are taking longer to fill, and asking rents softened slightly as owners and tenants reset pricing². This is a normal market adjustment, not a collapse. On the investment side, commercial real estate transactions increased nationally through mid 2025. Both the number of deals and total dollar volume rose, showing capital is still moving⁵. Buyers are active when pricing reflects today’s risks and returns. This is exactly what I am seeing in live pricing discussions and negotiations right now. Insurance remains one of the biggest issues for retail owners. Property insurance markets became more stable in 2025, and rate increases slowed in some areas. However, insurers are still selective. Coverage terms matter more than ever, especially for properties exposed to wildfire or coastal risk⁴. Insurance costs directly affect net income, lease negotiations, and buyer interest. Retail Outlook for Q1 and Q2 2026 In early 2026, the retail market is likely to stay steady but measured. Vacancy is expected to remain near current levels. Leasing will be deliberate, not rushed. Rents should hold close to where they ended in 2025 as owners and tenants continue to agree on realistic pricing. Capital will remain active for properties with solid income, strong tenant credit, and durable lease terms. Buyers are selective, but they are still moving forward when risk and return are properly aligned. Insurance markets will stay selective in the first half of 2026. Owners need to plan renewals carefully and understand how insurance affects operating costs, tenant negotiations, and future sale value. Here is a simple retail risk check for 2026: • Local vacancy around 6 percent, stable but uneven by location¹ • Leasing takes longer than peak years, making pricing discipline critical² • Capital remains active, but underwriting is conservative⁵ • Insurance coverage is improving in some areas, but terms still matter⁴ Not all retail performs the same. Discretionary-driven destinations like lifestyle centers, nightlife districts, and tourist-focused shopping streets feel more pressure when consumer spending slows. Retail that serves daily needs and essential services tends to perform better during uncertain cycles. The best strategy now is disciplined and data-driven. Focus on tenant credit strength. Protect lease term and income stability. Price based on real market data. Understand insurance risk clearly. This is how value is protected in changing markets. I help retail property owners position assets based on real tenant behavior and real buyer demand. Not headlines. Call or DM me if you want a clear view of how your retail property should be positioned for 2026. How will you adjust your leasing or investment strategy this year based on what the market is actually telling us? #RetailRealEstate #LosAngelesCRE #CommercialRealEstateOutlook #RetailInvestment #CRE2026 #MarcRetailGuy
