A Generational Reset for U.S. Manufacturing and What It Means for Industrial Real Estate

Kathryn Hamilton, CAE for Market Share Blog | March 5, 2026

The industrial market is rarely reshaped by a single law, but occasionally, policy shifts redirect capital for years. Panelists at NAIOP’s I.CON West conference in Los Angeles agreed that the One Big Beautiful Bill Act (OBBBA), signed into law by President Donald Trump in July 2025, may be one of those moments.

Moderated by Cameron Trefry, regional vice president, Ware Malcomb, panelists included Eloy Covarrubias, executive vice president, CBRE; Peter Kroner, director, national industrial, market intelligence, Avison Young; and Steven Herscher, CPA, tax partner, Armanino.

Like the Inflation Reduction Act and the CHIPS and Science Act, the OBBBA is expected to influence real estate investment decisions for years to come. Unlike those targeted measures, however, this legislation is broader and could materially affect manufacturing, development timelines, land values and capital flows.

Below are key takeaways from the conversation:

Permanent 100% Bonus Depreciation Changes the Investment Equation

The permanent extension of 100% bonus depreciation is one of the bill’s most significant provisions. Businesses can now deduct the full cost of qualifying assets in the year they are placed in service.

Because bonus depreciation rates shifted repeatedly over the past two decades, companies often made purchasing decisions based on tax timing. Permanence provides certainty, allowing investment decisions to align with operational needs. For manufacturers, that creates a strong incentive to modernize facilities, automate production and reinvest in equipment.

Qualified Production Property (QPP) Is a Game Changer

Historically, bonus depreciation applied to equipment and certain improvements – not the building itself. Under the OBBBA, qualifying manufacturing space may be eligible for accelerated depreciation.