100% Bonus Depreciation Is Now Permanent—Here’s How Retail CRE Owners Can Cash In

Marc Perlof • August 11, 2025

Hey Retail Real Estate Rockstars!

Big news--The One Big Beautiful Law, HR 1 (2025), recently made 100% Bonus Depreciation permanent. No expiration date. No phase-out. Retail property owners can deduct the full cost of qualified renovations in the year they are installed, beginning with assets put into operation after January 1, 2025¹.

 

This tax adjustment can immediately put more money in your pocket in the current retail market, when buildout costs are rising, tenants have higher expectations, and filling space quickly is crucial. It enables you to:

  • Write off Qualified Improvement Property (“QIP”) like tenant build-outs, storefront façades, HVAC, lighting, security, signage, and parking upgrades _immediately_².
  • Combine it with Section 179 for even bigger tax savings².
  • Plan projects over the long term without worrying about losing this benefit later¹.

 

For example, in order to draw in national tenants, you invest $500,000 on a new façade, improved lighting, and HVAC upgrades for your retail property. Previously, the tax write-off had to be stretched out over a number of years. You can now deduct the entire amount in 2025, which could immediately result in federal tax savings of at least $125,000 (assuming a 25% tax rate).³ You may use that money for additional renovations, debt repayment, or leasing incentives.

 

In addition to being a tax benefit, permanent 100% bonus depreciation allows you to move more quickly, make improvements to your retail property, and outperform the competition.

 

Now is the ideal moment to incorporate this into your plan if you intend to purchase, renovate, or relocate a retail property.

 

How will you use this new tax advantage to grow your retail real estate portfolio in 2025 and beyond?

 

Want to find out if your next renovation qualifies?


I help retail property owners apply these strategies to real deals.


Call or DM me for more information.

 

#100PercentBonusDepreciation #HR12025 #RetailRealEstate #CREInvestment

#TaxStrategy

Footnotes & Sources


  1. H.R. 1 2025 – Section 70301: Bonus Depreciation Permanent
  2. IRS Publication 946 – How to Depreciate Property
  3. KBKG – OBBB Tax Law Makes 100% Bonus Depreciation Permanent


This content is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Landlords, tenants, and property owners should consult with qualified legal counsel or tax professionals to understand how California AB 380 and related regulations apply to their specific situation. No attorney-client or fiduciary relationship is created by this communication.




© 2025 Marc Perlof Group. All rights reserved.

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