Those topics were front and center during a discussion at NAR NXT titled Washington Meets the Market: The Policies Shaping Commercial Real Estate, moderated by Shannon McGahn, NAR executive vice president and chief advocacy officer.
The session brought together NAR research and policy experts to discuss how decisions made in Washington, state capitols, and local governments are influencing commercial real estate markets. Speakers explored a range of issues, including data centers, tax policy, commercial conversions, and access to capital.
Opening the discussion, Jessica Lautz, NAR deputy chief economist, highlighted emerging trends in adaptive reuse and data center development. She pointed to growing interest in creative redevelopment strategies, including converting aging commercial properties into new uses and finding opportunities in underutilized buildings.
Tax policy was another major focus. Evan Liddiard, NAR's federal taxation director, discussed the importance of protecting the 1031 like-kind exchange and other tax provisions that support commercial investment. He also highlighted NAR's advocacy for incentives that could help convert underused commercial buildings into housing and encourage redevelopment of obsolete properties.
On the regulatory side, Erin Stackley, NAR director of commercial and policy oversight, said zoning and permitting requirements can often slow redevelopment efforts. While tax incentives can help make projects financially viable, she noted that state and local reforms are often needed to address development barriers, saying “We need to be looking at zoning and permitting reforms in order to make these projects actually get off the ground."
The discussion also touched on commercial lending and access to capital. Stackley noted that many commercial loans issued under very different economic conditions are now coming due, creating challenges for property owners and investors.
A unanimous conclusion of the panel was that solving commercial real estate challenges requires collaboration among policymakers, local governments, and industry stakeholders like NAR members.
