How the ‘One Big Beautiful Bill’ Could Reshape Corporate Real Estate Strategy

The recently passed tax legislation, widely dubbed the “One Big Beautiful Bill,” has captured the attention of CRE investors, developers, and corporate occupiers alike. With sweeping changes across bonus depreciation, deductions, and Opportunity Zones, this act carries implications that extend far beyond tax savings. It could redefine corporate real estate (CRE) decision-making—shaping site selection strategies, unlocking new economic incentives, and influencing broader market trends.

This blog explores how the act’s key provisions intersect with CRE and what organizations should consider as they plan for long-term resilience and growth.

Bonus Depreciation: A catalyst for value-add Investments and Modernization

One of the headline provisions in the act is the restoration of 100% bonus depreciation, enabling investors to write off the full cost of qualified property in the first year. For CRE, this provision encourages capital investment in value-add projects—from upgrading Class B offices to repositioning industrial sites for last-mile logistics.

This accelerated write-off also aligns with trends in corporate site selection. Companies are increasingly favoring properties that offer sustainable design, modern amenities, and adaptability for hybrid work arrangements. The tax incentive lowers barriers for landlords to make these upgrades, enhancing tenant attraction and retention.

Deductions: Supporting business expansion and CRE demand

Two major deduction changes stand out:

Permanent QBI Deduction

Locking in the Qualified Business Income deduction provides sustained tax relief for businesses and property owners alike. This financial flexibility can fuel business expansions, new hiring, and the absorption of CRE across office, industrial, and retail sectors.

Increased SALT Deduction Cap

High-tax states, such as New York and California, could see a renewed surge in investor interest. The increased cap offsets federal tax burdens, making these markets—often rich in talent and infrastructure—more viable in site selection analyses.

For site selectors, this means urban cores previously constrained by tax policy may regain competitiveness in location decisions.

Opportunity zones and rural revitalization

By expanding and making Opportunity Zones permanent, as well as lowering thresholds in rural areas, the act provides powerful tools for attracting capital to underserved markets. This could spur the redevelopment of small-town Main Streets, revitalization of historic industrial corridors, and creation of new logistics hubs closer to end consumers.

For corporate occupiers, rural zones with improved infrastructure and tax advantages could emerge as attractive options for manufacturing, warehousing, and back-office operations.

Qualified Production Properties: Accelerating U.S. manufacturing

A new category—Qualified Production Properties (QPPs)—would allow full cost deductions for building manufacturing plants and modern warehouses. With reshoring and nearshoring trends already underway, this provision may accelerate investment in advanced manufacturing facilities and cold storage.

Site selection professionals and CRE investors should watch for:

• Increased competition for industrial land in secondary and tertiary markets.
• Partnerships between public agencies and developers to create shovel-ready QPP sites.

1031 exchanges and estate tax relief: Enhancing market fluidity

Preservation of 1031 like-kind exchanges keeps capital flowing across asset classes, allowing investors to realign portfolios without punitive tax consequences. Meanwhile, raising the estate tax threshold to $15 million removes a significant barrier for multigenerational ownership. These changes promote long-term holding strategies and greater stability in CRE markets.

Infrastructure spending: Unlocking logistics value

The act’s $12.5 billion commitment to modernize Federal Aviation Administration (FAA) air traffic systems will enhance efficiency at major airports—critical nodes in the logistics and supply chain network. Properties near key hubs stand to benefit from improved throughput and higher demand, reinforcing the value proposition for industrial site selection near Tier 1 airports.

What the new legislation means for CRE stakeholders

The One Big Beautiful Bill highlights a broader shift in which tax policy and economic incentives play a central role in shaping CRE strategy. From selecting the right market and asset type to leveraging tax-advantaged development opportunities, organizations that align their real estate plans with these provisions will be well-positioned to capture value.

Now is the time for CRE leaders to:

• Reassess portfolio strategies in light of evolving tax dynamics.
• Engage in site selection studies that incorporate new economic incentives.
• Partner with advisors to maximize returns from bonus depreciation to Opportunity Zone benefits.

Conclusion: Planning for a tax-optimized future

The One Big Beautiful Bill, which President Trump signed on July 4, could usher in a new era for corporate real estate—one where tax incentives, infrastructure investments, and market shifts converge to reshape where and how companies operate. Proactive planning today can help CRE investors and occupiers leverage these changes to unlock growth, drive efficienc,y and build resilient portfolios.