Victories, Challenges and Economic Uncertainty: CRE’s Legislative Outlook

By Kathryn Hamilton, CAE | October 7, 2025

NAIOP and commercial real estate leaders are closely watching a landscape shaped by tax policy, energy debates, tariffs and political dynamics. NAIOP’s priority issues have been front and center this year, offering both victories and challenges for the industry.

“One of the biggest fights this year was the renewal of the Tax Cuts and Jobs Act of 2017,” said Aquiles Suarez, NAIOP senior vice president of legislative affairs in a special session at I.CON Cold Storage. With critical provisions set to expire, NAIOP’s legislative team actively worked to safeguard capital gains rates, Section 1031 like-kind exchanges, bonus depreciation, the 20% pass-through deduction, opportunity zones, and the estate tax.

“These provisions are more than just numbers on a page. We know they drive real decisions for developers, investors and communities,” Suarez said. The association focused on ensuring that these aspects remained unchanged, knowing that alterations could significantly affect project feasibility and investment strategies.

A major legislative victory came with the passing of what President Donald Trump dubbed the “One Big Beautiful Bill.” For the CRE sector, the results were significant. Key issues were included and – most importantly – made permanent, including 100% bonus depreciation extension, preserving the pass-through deduction, reauthorizing opportunity zones, and maintaining the estate tax exemption.

Equally important was the industry’s success in preventing harmful provisions from taking hold. “We kept the state and local tax deduction from being eliminated for businesses, defended Section 1031 exchanges, and ensured carried interests continued to be treated as capital gains,” Suarez said. NAIOP also lobbied to protect foreign investment by addressing proposed retaliatory taxes that could have discouraged international participation in U.S. real estate.