No, there are no tax incentives for demolishing a commercial property. However, when an investor sells a property for more than the property's adjusted cost basis (original cost of the property minus any depreciation deductions taken), depreciation recapture is triggered. This means the investor would need to pay their regular income tax rate on the property sale proceeds instead of the capital gains tax rate, which is much less.
In most cases, developers will take out a commercial construction loan in order to fund the development process for commercial property. Construction loans generally have terms of 1-3 years, are interest-only (I/O), and require a borrower to already have a takeout commitment from a permanent lender that will allow them to refinance and repay the principal of their loan when their term is up. Since commercial demolition is a core part of the development process, it will often be funded directly from construction loan proceeds, but not always.