T
he "One Big Beautiful Bill Act" (OBBA), signed into law on July 4, 2025, preserves and strengthens tax advantages for U.S. commercial real estate ownership. This includes equity and debt investments, which can lower taxable income while increasing cash returns and net operating cash flow. The removal of section 899 from the final bill is also seen as a positive development, as it was expected to have negative implications for foreign investment in the U.S.

    The OBBA has been widely viewed as having net positive implications for the U.S. commercial real estate market. For more information on the key outcomes and effects of the Big Beautiful Bill, read our full report here.

    Investing in commercial real estate involves risks, including possible loss of principal, value fluctuations, capital market pricing volatility, liquidity risks, leverage, credit risk, occupancy risk, and legal risk. Rising interest rates, refinancing pressures, and potential defaults can exacerbate these risks.

    This material is for informational purposes only and should not be relied upon for tax, legal, or accounting advice. You should consult your own advisors before engaging in any transaction. The information presented has been derived from sources believed to be accurate; however, we do not independently verify or guarantee its accuracy or validity.

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