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via Adam Dunn   I sell & capitalize apartments | @AdamDunnCRE <— visit Adam here

One Big Beautiful Bill – What CRE Investors Need to Know


Congress just passed the One Big Beautiful Bill (“OBBB”) — and love it or hate it, the implications for commercial real estate are real.

As someone advising multifamily investors and developers every day, here’s my take on what matters most for our sector:

– 100% Bonus Depreciation Restored
Immediate write-offs on property improvements = stronger after-tax returns, better cash flow, and a compelling reason to upgrade or reposition assets.

– Permanent 20% QBI Deduction
Pass-through owners (LLCs, LPs, S-corps) get to keep more of what they earn—critical for syndicators, family offices, and developers.

– Estate Tax Exemption Raised to $15M+
Smooth generational transfers are now easier to structure, especially for operators with long-hold strategies or growing portfolios.

– Higher SALT Cap (but income-limited)
Investors in high-tax states like Massachusetts get partial relief—but the benefits phase out above $400K MAGI.

– Clean Energy Tax Credit Rollbacks
Some solar and green-building incentives were pulled back—making it important to reassess the ROI on sustainability strategies.

– Deficit Spending = Interest Rate Risk
While tax relief is welcome, deficit pressure may fuel upward movement in cap rates. Staying ahead on financing strategy is essential.

Takeaways to CRE investors right now:

• Time improvements to maximize bonus depreciation
• Consider pass-through structures to unlock QBI benefits
• Proactively plan estate transfers while the window is open
• Recalculate IRRs for green building projects post-credit rollback
• Lock in long-term debt before rates catch up to fiscal policy

If you’re actively acquiring, recapitalizing, or preparing for generational ownership transition—this bill changes the math.

What are your thoughts?

#cre #capitalmarkets