Tax Benefits Drive South Florida Owner-User Office Surge

South Florida businesses are increasingly purchasing their own office spaces, driven partly by enhanced federal tax incentives that can deliver substantial savings. The trend reflects a broader national shift toward owner-occupied commercial real estate, with companies seeking greater control over their workplace environments.

Miami-based Silver Spoon Solutions exemplifies this movement. The restaurant management firm, which provides accounting and back-office services for food and beverage venues, is transitioning from leasing to ownership. Owner Manuel Farello expects to secure a $200,000 tax writeoff through the purchase, leveraging federal tax benefits introduced under the One Big Beautiful Bill Act passed last summer.

The legislation's 100% bonus depreciation provision allows companies to deduct the full value of qualifying building components in the first year of operation. These eligible elements include carpets, blinds, HVAC systems, electrical and plumbing components, plus operational necessities like computer servers, technology equipment, furniture and fixtures. The building structure itself remains subject to traditional depreciation schedules spanning nearly four decades.

Cost segregation studies help owner-users identify which portions of their properties qualify for accelerated depreciation. Industry experts indicate these qualifying components typically represent approximately 30% of an office property's total value. Previously, companies could only write off 50% of qualifying components in the first year, with remaining amounts spread across subsequent years.

"Instead of paying more taxes, why don't I invest in something I know I need and I can take the full depreciation," Farello explained. "You own the property, plus you get the bonus depreciation."

The timing proves particularly advantageous as hybrid work arrangements have reshaped office demand patterns. Many companies now possess clearer insights into their spatial requirements and preferences, prompting them to develop customized workspaces as their own landlords rather than adapting to existing rental properties.

Major corporations are pursuing this strategy in South Florida. Ken Griffin's Citadel and Spanish banking giant Banco Santander are planning towers in Miami's Brickell district, while AT&T is developing a campus in Plano, Texas.

Nationwide data from Avison Young reveals owner-user purchases reached $8.9 billion last year, representing 15.6% of total office transaction volume. This marks the highest percentage recorded over the past decade, underscoring the accelerating shift toward corporate ownership of workspace assets.

Commercial real estate expert Steve Triolet from Dallas characterizes the tax benefits as complementary rather than primary motivators. "Companies appreciate it, and they are, of course, going to utilize it," he noted. "It's icing on the cake."

The bonus depreciation incentive extends beyond office properties to restaurants, retail establishments and other commercial operators who own their business premises. This broad applicability supports the legislation's intended goal of spurring economic growth through increased business investment in operational assets.