By Trevor Allen, Esq.
Naples, Florida has a unique commercial real estate market. It emphasizes quality over quantity, and because of its seasonal nature and coastal location, a commercial lease here does more than secure space. It can directly impact the overall value of your business. Since Florida commercial leases generally follow a “freedom of contract” approach, the terms of the lease will usually control.
As we settle into 2026, several changes, including the repeal of Florida’s sales tax on commercial rentals and rising insurance and operating costs, make this an appropriate time to review key provisions in your lease. Below are three important areas to focus on for leases in Collier County.
1. Rent After the Repeal of Florida’s Sales Tax on Commercial Rentals
For many years, Florida imposed a sales tax on commercial rent under Chapter 212 of the Florida Statutes. It was one of the few states that taxed commercial leases in this manner. However, beginning October 1, 2025, that tax was repealed for certain types of property rental periods starting on or after that date.
This repeal affects how leases should be drafted and how rent is calculated. Many existing leases still provide that rent includes applicable sales tax as part of the cost, but that language may no longer be entirely accurate for lease or occupancy periods beginning on or after October 1, 2025. In high-demand areas such as Fifth Avenue or Third Street South, eliminating the sales tax can significantly reduce a tenant’s overall rent. For that reason, it is important to review any lease provisions that reference sales tax.
2. Common Area Maintenance (CAM) Charges in High-Value Properties
Common Area Maintenance (CAM) charges are often a source of confusion or dispute in commercial leases. These charges typically cover expenses such as landscaping, parking lot maintenance, lighting, insurance, and property taxes. In high-end retail or office properties, CAM charges can be substantial.
Unlike residential tenants, commercial tenants in Florida do not receive statutory protections regarding CAM charges. Courts will generally enforce whatever the lease provides, making clarity in drafting essential.
In Naples, property taxes often account for a significant portion of CAM expenses. Tenants should carefully review how CAM costs are defined in the lease. Are expenses such as roof repairs included? Is there a cap on annual increases? How is the tenant’s share calculated, particularly if portions of the property remain vacant? These questions are critical, and the answers can determine whether a lease supports your business or strains it.
Additionally, many Naples businesses depend heavily on the winter season for revenue. Unexpected increases in CAM charges can disrupt cash flow planning. A well-drafted CAM provision helps reduce uncertainty and promote predictability.
3. Assignment and Subletting in a Changing Market
Naples is a market where businesses frequently change hands. Medical practices are acquired, restaurants are sold, and retailers often transition ownership due to retirement or other factors. In these situations, the lease is frequently one of the business’s most valuable assets. If the lease grants the landlord absolute discretion to approve or deny an assignment, a potential sale may be at risk.
A lease may provide that the landlord cannot unreasonably withhold or delay consent to an assignment or sublease. It may also establish financial criteria for a proposed transferee and allow transfers in connection with mergers, asset sales, or transfers to affiliated entities.
In a high-demand market like Naples, the ability to transfer a lease on reasonable terms can significantly strengthen a business owner’s negotiating position. This provision should be drafted with future business transitions in mind, not solely the current occupancy.
Preparing Your Lease for the Future
Although commercial leasing in Naples follows Florida law, the local market presents distinct considerations. The repeal of the sales tax on commercial rentals affects rent calculations, and increased business transitions elevate the importance of assignment rights.
Your lease should do more than secure space for today. It should anticipate growth, market shifts, and unforeseen circumstances. In a market like Naples, a carefully drafted lease protects not only your current operations but also your long-term interests.
Lease rights and tax consequences depend on the specific language of the lease and the facts of each situation. If you have questions about your commercial lease or are considering negotiating or revising lease terms, Woodward, Pires & Lombardo, P.A., is here to assist.
About the Author
Trevor Allen, Esq., is an associate attorney at Woodward, Pires & Lombardo, P.A., where he focuses on business and real estate law.
Woodward, Pires & Lombardo, P.A.
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