Build for the New Era of CRE Incentives 🏗️

Hit the Window for Bonus Depreciation Before Deadlines

Author

Anne Morgan
October 09, 2025

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Hello, Commercial Real Estate Pros! 🏢

In this issue, a new U.S. law, the One Big Beautiful Bill Act, reshapes commercial real estate with targeted incentives. It extends tax relief, boosts domestic manufacturing, and accelerates energy-related credits, which could drive factory development in cities such as Columbus, Indianapolis, Atlanta, and Dallas through 2028.

Clean-energy credits are scheduled to phase out faster, creating a likely retrofit rush from 2026 to 2027 for solar, HVAC, and insulation upgrades. Medical office demand remains resilient, while several secondary markets are expected to absorb space at a stronger pace than the national average.

📰 Upcoming in this issue

  • 🏢 The Big Beautiful Bill Ushers In a New Era for CRE Buildings

  • 🎯 Ready to Expand? Here's the Smart Way to Do It

  • 📦 Turning Square Footage Into Smart Footage

🏢 The Big Beautiful Bill Ushers In a New Era for CRE Buildings

Industrial values could surge in hubs such as Columbus and Dallas, with a retrofit boom expected before energy credits expire.

Key Takeaways:

  • 🏭 Industrial Surge: Manufacturing incentives lift demand and values in key markets through 2028.

  • ☀️ Retrofit Rush: Accelerating credit phaseouts spur upgrades as owners add solar, HVAC, and insulation to capture incentives

  • 🏥 Healthcare Hotspots: Secondary markets, such as Tampa, Austin, and Phoenix, experience faster medical office absorption and more flexible lease terms.

  • 🧭 Owner Playbook: Focus on tenant retention, technology upgrades, and energy efficiency to align with new demand drivers.

🎯 Ready to Expand? Here's the Smart Way to Do It

Thinking about investing in a new asset class, such as retail or industrial? This video breaks down the best time to pivot and what to address first to maintain strong growth momentum.

Key Takeaways:

  • 🌍 Go Wider Before Going Different: Expanding into new locations often brings faster results than switching asset types.

  • 🔍 Weak Buyer List, Weak Deals: If your buyers only want unicorn 10-caps, it’s time to strengthen your list.

  • 🧠 Strategy Beats Hustle: More outreach won’t help if your follow-up, pricing, or targeting is off.

  • 🚀 You’re Closer Than You Think: Most agents don’t need a new market—they need better processes and stronger lists.

📦 Turning Square Footage Into Smart Footage

AI transforms warehouses from static spaces into responsive assets, using sensors and models to orchestrate labor, equipment, and energy. The piece highlights measurable gains in uptime and throughput.

Key Takeaways:

  • 🤖 Autonomous Operations: AI coordinates robots, dock slots, and pick paths, reducing idle time and raising throughput across extensive facilities.

  • 📊 Real-Time Visibility: Computer vision and IoT streams feed digital twins that track inventory, congestion, and asset health, enabling faster decision-making.

  • 🔧 Predictive Maintenance: Models anticipate failures in HVAC systems, conveyors, and forklifts, scheduling service that minimizes downtime and costs.

  • 🌱 Energy and ESG: Optimization trims lighting and HVAC waste, while automated reporting tracks emissions, utilization, and compliance for stakeholders.

💬 Quick poll:

After reading, what will your team consider next?

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Why It Matters

Owners who plan early for tenant retention, technology upgrades, and energy efficiency can capture benefits while incentives last. Proactive asset management and flexible tenant-improvement packages position portfolios to win leases and navigate a busy retrofit calendar.

Catch you in the next issue,

Anne Morgan
Editor-in-Chief
Commercial Real Estate Weekly

P.S. Interested in sponsoring a future issue? Just reply to this email and I’ll send packages!

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