Will Santa Monica's Real Estate Transfer Tax Affect You?- Measure GS

Marc Perlof • April 27, 2023

The ballot measure called MEASURE GS has increased taxes on sales of commercial and residential real estate valued at $8 million or above in Santa Monica [1]. The groups and people behind Measure GS distribute brochures and postcards with the statement, "Only wealthy real estate investors will pay this tax," as a marketing strategy [1][6]. However, critics argue that this statement misleads people by suggesting that only wealthy investors will be affected by the tax, while in reality, the tax applies to anyone who sells or transfers a real estate property worth $8 million or more [6].


According to the proponents of Measure GS, the tax increase is necessary to fund expansion of the city's services and programs, including public educational programs, that have contributed to the high property values in Santa Monica [1]. However, critics argue that the tax increase of 833% on a small group of people is unfair [6]. Moreover, they question the rationale that the value of a real estate property worth $8 million or more is primarily due to city services, rather than its location or other factors [6].


It is important to note that Proposition SM, passed two years ago, increased the Real Estate Transfer Tax on residences valued at $5 million in Santa Monica from $3 per $1000 of real estate valuation to $6 per $1000 of real estate valuation to fund initiatives to address comparable problems. However, it is unclear whether this tax increase has resulted in any significant changes in crime, homelessness, or the administration of affordable housing in the city [10].


In summary, the groups and people behind Measure GS distribute brochures and postcards with the statement, "Only wealthy real estate investors will pay this tax," as a marketing strategy. However, this statement can be seen as misleading since the tax applies to anyone who sells or transfers a real estate property worth $8 million or more. While the proponents of Measure GS argue that the tax increase is necessary to fund the expansion of the city's services and programs, critics question the fairness of an 833% tax increase on a small group of people and the rationale that the value of a real estate property worth $8 million or more is primarily due to city services. It remains to be seen whether the tax increase will result in any significant changes in crime, homelessness, or the administration of affordable housing in Santa Monica [[1](https://votersedge.org/ca/es/election/


By Marc Perlof • November 6, 2026
CVS Health to split off its retail pharmacy business CVS Health is planning one of the largest corporate separations in history as it looks to separate its retail pharmacy operations from its insurance and pharmacy benefits business. The retail and healthcare giant, whose total revenues increased to a record high of $402.1 billion in 2025, intends to separate into two independent, publicly traded companies, with the split expected to be completed by the first half of 2028. The decision follows a “comprehensive strategic review by the CVS Health board,” the company said...
By Marc Perlof • November 2, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 November 2, 2026 If you own retail real estate, here’s what just changed for you. One of the biggest risks to a retail property is not always one owner making a bad decision. It is multiple owners failing to make a decision at all. When family members, business partners, or other co-owners delay action, the cost can show up through lost income, higher expenses, missed opportunities, weaker financing, or a lower sale price. Retail properties are often owned by siblings, spouses, business partners, LLC members, family offices, trusts, or investment groups. Each owner may have a different financial goal, timeline, and tolerance for risk. Disagreement is normal. The larger problem is having no clear process for turning disagreement into a decision. Even if you own the property by yourself today, these same decisions often become the responsibility of a spouse, children, successor trustee, or other heirs in the future. A clear decision process today can help prevent confusion later. What Do Multiple Owners Commonly Miss? Many ownership groups assume waiting is the safest choice when they cannot agree. They delay a lease decision, postpone repairs, wait to refinance, or hold off on selling until everyone feels comfortable. That may reduce conflict in the moment, but it does not stop the property from changing. Leases move closer to expiration. Deferred maintenance grows. Financing terms and buyer demand can change. Waiting may feel neutral, but its financial effect rarely is. Good properties are often held back by poor decision processes, not poor real estate. The issue becomes harder when each owner defines success differently. One partner may want monthly income. Another may want to sell and reinvest. One sibling may want to keep the property because it has been in the family for decades, while another may need cash for retirement or other obligations. None of these goals are automatically wrong. The ownership group still needs to decide which goal should guide the property’s current strategy. Why Do Ownership Groups Delay Important Decisions? Experience does not remove emotion, fear, or personal pressure. An owner may understand leasing and property values but still resist a sale because the property belonged to a parent. Another may reject a reasonable lease because the proposed rent is below what the space achieved years earlier. Another common reason for delay is the belief that retail property values will continue increasing over time. Many properties have appreciated over long periods, but that does not automatically make waiting the best financial decision. While ownership waits, leases age, capital needs grow, financing changes, and buyer demand shifts. A property’s future value depends on much more than appreciation alone. The better question is not, “Will this property be worth more someday?” It is, “Will waiting create a better overall financial result than acting today?” Owners may also delay because they want to avoid regret. They worry that selling now could mean missing a higher price later, or that completing an improvement could waste money. That fear can cause repeated delays while income, expenses, tenant risk, and market conditions continue to change. The goal is not to make a perfect decision. It is to make the best available decision based on the property’s current income, condition, financing, leases, marketability, and ownership objectives. How Can Indecision Affect Property Value? Property value is tied closely to income, risk, and buyer confidence. If ownership delays a lease renewal, buyers may underwrite more vacancy risk. If repairs are postponed, buyers may reduce pricing for future capital costs. If owners cannot agree on a sale strategy, the property may remain exposed to tenant rollover, changing financing conditions, or new competition. Indecision can also weaken negotiations. A tenant may recognize that the owners are not aligned. A buyer may question whether the group can approve terms, respond to due diligence, or close on schedule. A lender may require clear authority before moving forward with refinancing. The cost may not appear as one large loss. It often shows up through additional vacancy, higher repair costs, reduced leverage, lost rent, or a weaker offer. Over time, those smaller consequences can materially reduce value. What Should the Ownership Group Decide First? The first decision is not whether to sell, refinance, lease, improve, or hold. It is agreeing on the ownership group’s primary objective. Is the priority current cash flow, long term appreciation, preserving the property for the next generation, reducing risk, or preparing for a sale within a defined period? Once that objective is clear, the group can compare each option using the same standard. A lease proposal can be measured by its effect on NOI, flexibility, and value. A capital improvement can be evaluated based on cost, expected rent, tenant demand, and sale impact. A sale can be reviewed based on net proceeds, taxes, timing, and reinvestment options. Without a shared objective, every discussion becomes a debate over personal preferences. With a shared objective, the group can focus on what best supports the investment. Real Deal Insight I recently advised a family that owned a retail property through multiple siblings. One wanted to sell, another wanted to continue collecting income, and another wanted to wait because they believed the property’s value would continue increasing. Before discussing pricing or marketing, I helped the ownership group compare the financial consequences of each option, including projected income, future capital needs, lease rollover, holding costs, and the risks of delay. Once everyone reviewed the same information, the discussion shifted from individual opinions to the property’s investment objectives. That allowed the group to make an informed decision based on facts instead of assumptions. Strategic Advice for Retail Property Owners If your property has multiple owners, start by defining the group’s main investment objective and expected holding period. Each owner should understand whether the current goal is income, growth, preservation, redevelopment, refinancing, or sale. Then decide how major property decisions will be reviewed. The group should know who gathers the information, who has authority, what requires a vote, and how long the group has to respond. Governance and legal issues should be reviewed with the appropriate attorney, CPA, or other licensed advisor. The goal is not more meetings. It is a process that allows the group to decide before delay limits the available options. Owner Self-Assessment If your ownership group had to decide today whether to renew a major tenant, complete a capital improvement, refinance, or sell, would every owner agree on the property’s main objective and how the decision should be made? Final Takeaway Multiple owners do not need to agree on everything, but they need a clear process for making decisions before delay reduces income, options, or value. In next week’s blog, “The Hidden Cost of Waiting: How Decision Delays Reduce Property Value,” I will explain how indecision can affect lease negotiations, repairs, financing, buyer interest, and property value. If your retail property has multiple owners, I can help your group compare the financial impact of holding, leasing, improving, refinancing, or selling before indecision limits the available choices. The quality of a retail property’s decisions often depends less on the property itself and more on the process the owners use to make those decisions. Is your ownership group protecting the property by waiting, or is waiting quietly becoming the most expensive decision? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #PropertyOwners #FamilyPartnership #BusinessPartners #FamilyOffice #InvestmentProperty #ShoppingCenters #MarcRetailGuy
By Marc Perlof • October 30, 2026
Tractor Supply Q3 sales rise 5.1%; to moderate new store openings Tractor Supply Company delivered third-quarter earnings and sales that beat analyst expectations and said it was gaining share against most categories and metrics even as its customers remain cautious. On the company’s earnings call, CEO Hal Lawton said that elevated interest rates and reduced housing mobility are weighing on property improvements and larger projects. Pet ownership headwinds, particularly new pet acquisition, continue to affect demand in certain categories...
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