As the year winds down, this is the perfect time for commercial property owners in Central Florida to review their properties, confirm compliance, and make sure everything is set up for a smooth start to 2026. Between a major change in Florida tax law, increased operating costs, and the usual maintenance and insurance needs, there are several important items worth revisiting before the year ends.

Below is a practical checklist you can use to wrap up 2025 with confidence.

1. Review Lease Agreements considering Florida’s Tax Change

One of the biggest changes affecting commercial owners this year is Florida’s repeal of the state’s sales tax on commercial lease payments. As of October 1, 2025, most commercial leases in Florida are no longer subject to the state sales tax on rent. This change impacts how owners bill tenants, structure leases, and forecast revenue.

Actions to take now:

  • Update rent invoices to remove the tax for all periods after October 1.
  • Review any leases that span September and October to ensure prorating was handled correctly.
  • Communicate the change to tenants so their expectations align with the updated billing structure.
  • Confirm that accounting software reflects the new rules to avoid errors moving into 2026.

This update also offers an opportunity to revisit your lease templates and consider whether adjustments could improve clarity or market competitiveness.

2. Complete a Full Exterior and Interior Property Inspection

A year-end walkthrough helps catch small issues before they turn into larger, more expensive problems. Regular inspections are strongly recommended by the Institute of Real Estate Management (IREM), which emphasizes preventative maintenance as one of the most important ways to preserve asset value and reduce operating risk (IREM, 2024).

Items to review include:

  • Roofing, drainage, and exterior walls
  • HVAC systems, electrical components, and plumbing
  • Fire safety equipment and security features
  • Parking lots, lighting, and common areas
  • Accessibility features and signage

Document any issues you find and schedule work orders promptly. It is always easier and less costly to plan maintenance during the dry season rather than waiting until summer storms return.

3. Reevaluate Insurance Coverage Before Renewal Season

Commercial property insurance across Florida continues to see shifting premiums and underwriting requirements. Rising replacement costs, storm risk, and inflation remain key factors as we head into 2026. Many owners may find that their current policies no longer reflect the true replacement value of their buildings.

Consider reviewing:

  • Property coverage limits
  • Deductibles and exclusions
  • Flood insurance needs
  • Business interruption coverage
  • Tenant compliance with required insurance

Annual insurance reviews are widely recommended in the commercial real estate industry, particularly in high-risk states like Florida (Buildium, 2024).

4. Revisit Operating Expenses and 2026 Budgeting

As you prepare year-end financials, this is a good time to review your operating expenses and compare them to current market rates. Vendor pricing, maintenance costs, insurance premiums, and utilities often shift throughout the year. Your 2026 projections should reflect updated costs, not last year’s assumptions.

Useful steps include:

  • Reviewing service contracts
  • Evaluating CAM pass throughs for accuracy
  • Comparing rents to similar properties in your market
  • Updating your reserve plan for capital improvements

Year end is also a natural time to decide whether lease renewals or rent adjustments are needed based on upcoming expenses.

5. Update Lease Templates, Tenant Notices, and Internal Documentation

With recent legal and financial changes, it is important to confirm that your lease forms, renewal templates, operating procedures, and tenant notices are up to date.

This includes:

  • Removing outdated tax language
  • Updating any compliance references
  • Ensuring tenant communication materials reflect the latest requirements
  • Reviewing your digital and paper files for accuracy and consistency

Clear, accurate documentation helps prevent misunderstandings and protects both you and your tenants.

6. Consider Professional Property Management Support

Managing commercial properties in Florida is becoming more complex each year, especially with constant regulatory updates and higher expectations for tenant service and property performance. Organizations like IREM stress the importance of professional management in maintaining property value, reducing risk, and improving tenant satisfaction (IREM, 2024).

If you have grown your portfolio or simply want more structure heading into 2026, this may be a good time to explore partnering with a certified property management team.

Final Thoughts

Finishing the year with a clear understanding of your leases, property conditions, financials, and insurance coverage sets the stage for a strong start to 2026. With Florida’s tax changes now in effect and operating costs continuing to shift, having everything organized before January arrives will put you in a much better position next year.

If you need help implementing any part of this checklist, our commercial management team is here to support you.

References

Buildium. (2024). Annual property management checklist for owners.

Florida Realtors. (2025). State ends tax on commercial leases.

Institute of Real Estate Management. (2024). Property maintenance and risk management best practices.

Institute of Real Estate Management. (2024). The value of professional real estate management.

JDSupra. (2025). Florida HB 7031 and the repeal of the business rent tax.