With the Big, Beautiful Bill now signed into law — and with interest rates, tax incentives and construction dynamics shifting in real time — 2025 is shaping up to be one of the most pivotal years in recent memory for commercial real estate decision-makers.
Whether you own the building, lease the space or advise someone who does, here are seven smart moves to make before the year ends:
Conduct a cost segregation study
Why? The new law reinstates 100% bonus depreciation on qualifying plant and equipment—but to access that benefit, you need to know which assets qualify.
What to do: If you’ve invested in improvements or own industrial real estate, get a qualified cost segregation firm involved. It could unlock hundreds of thousands in immediate tax savings—legally.
Reevaluate lease vs. own
Why? Interest rates are still high—but so are lease rates. And with bonus depreciation back, the ownership equation may now tilt in favor of buying for some occupants.
What to do: Run side-by-side comparisons again. Don’t assume yesterday’s numbers still apply. Small Business Administration (SBA) financing, ownership clauses, and creative structures may make buying feasible—even now.
Talk to your CPA
Why? Too many owners and tenants assume their tax preparer will catch the benefits automatically. But the OBBB changed the rules—and proactive planning is essential.
What to do: Schedule a strategic call before year’s end and ask specifically about:
—Bonus depreciation eligibility
—Section 179 limits
—Impact on capital improvement planning
—Energy-efficient upgrade credits
Consider energy improvements now
Why? Solar, lighting, heating and cooling upgrades, and even electric vehicle charging installations, are eligible for new federal tax credits. These incentives may phase out or tighten in 2026.
What to do: If you’ve been postponing efficiency upgrades, now may be the ideal time. Look into financing programs that pair well with the new federal credits.
Review long-term control over property
Why? Whether you’re an occupant or investor, control is more important than ever in a volatile market. Do you have extension options? Purchase rights? Favorable assignability terms?
What to do: Pull out your lease or operating agreement. Confirm whether you have:
—Renewal rights with clear timelines
—Right of First Refusal (ROFR) or First Offer (ROFO) clauses
—Protection against unwanted sale or transfer
If not, now may be the time to negotiate them in.
Prepare for estate or ownership change
Why? With billions of dollars in commercial real estate wealth set to change hands this decade, 2025 is the right time to get ahead of who owns what and who will inherit what.
What to do: If you’re an aging owner, review your trust, LLC structure, and succession plan. If you’re an heir or partner, ask questions now—before you’re suddenly managing a building you didn’t expect to own.
Line up a deal team
Why? As more buyers, sellers and tenants look to capitalize on 2025’s tax environment, the demand for lenders, inspectors, brokers, CPAs and attorneys will intensify.
What to do: Build your team now:
—Commercial broker
—Real estate attorney
—CPA or tax strategist
—Cost segregation firm
—Lender or SBA contact
Deals that close smoothly in December started planning in August.
Bottom line: Be the active one.
You don’t need to be the biggest player in the market to win in 2025, you just need to be the one who’s paying attention.
The best opportunities this year will go to those who prepare early, ask the right questions, and surround themselves with people who know where the landmines — and the leverage points — are buried.
Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.
