The rent roll
Tenants, rents, lease end dates and square footage per bay.
Donate a strip retail center or small shopping center to charity
Retail property specialists: (888) 228-7320
Donate a Strip Retail Center to Charity
Small strip centers are hard to own from a distance: leases roll over at different times, a vacant bay drags on the whole property and every roof repair is shared. Real Estate with Causes accepts donated strip centers and small shopping centers nationwide, fully leased, partly vacant or empty. The leases transfer with the property, and we take over as landlord.
Tell us about the property
Every property gets a look. Name, phone and email are the only required fields.
Fully IRS Compliant
We Handle the Paperwork
Form 8283 Done Right
501(c)(3) Recognized Charity
Leases, vacancy and value
A strip center is valued mostly on its income, so the rent roll, lease terms and tenant quality drive the appraisal. Vacant bays reduce current income but also represent upside for a buyer who can lease them.
Common area charges
Leases that pass taxes, insurance and maintenance through to tenants are common in retail. We look at how yours are written.
Estoppel letters
We may ask tenants to confirm their lease terms in writing before the transfer.
The tax side of donating a retail center
For commercial property held more than a year, the deduction is generally its appraised fair market value, limited to 30% of AGI with a five-year carryforward, and depreciation taken on the building can reduce it. Your advisor will need your depreciation schedule.
Centers owned in an LLC or partnership are donated by the entity, and each partner’s share of the deduction follows the entity’s tax treatment.
What to have ready when you call
Most retail owners have these in a single folder.
Copies of the leases
Especially any with renewal options, exclusives or co-tenancy clauses.
Recent operating statements
Income, expenses and common area charges for the last year or two.
Strip retail donation questions, answered
Will you accept a center with several vacant bays? +
Yes. Vacancy lowers the current income and the appraised value, but it does not stop a donation. Tell us the occupancy and we will review it.
What happens to my tenants? +
Their leases transfer with the property and stay in force. Tenants are notified of the new landlord and where to pay rent.
Do tenants have a right of first refusal? +
Some retail leases do. We read the leases for any right of first refusal or purchase option before the gift is completed.
The center has a mortgage. Does that stop it? +
Not automatically. A remaining loan makes the gift a bargain sale, and whether it works depends on the balance, the equity and the lender.
Can I donate one building in a center and keep the rest? +
If it is a separate legal parcel, yes. If the center is one parcel, a partial gift is more complicated. Tell us how the property is platted.
We do not provide tax or legal advice. See IRS Publication 526, Publication 561 and the Form 8283 instructions, and consult your own advisor.
Related guides
Tell us about the center and we will review it
Send the address and a rent roll, and we will tell you plainly what a donation would look like.