The IRS building in Washington D.C.
You wouldn’t know it by the last four months, but major news stories are always prone to ebbs and flows. The federal Opportunity Zone program is a case in point when it comes to commercial real estate publications. The investment vehicle has been all the rage at various points since it was created in late 2017, only to take a step back as buzz died down.
As you’ll read in this month’s cover story, Opportunity Zones have a chance to gain new attention and new momentum after a series of recent steps by the IRS. The agency announced in early June that it was relaxing deadlines for both investors and the development projects that they’re funding across the country, seeking to provide relief in the wake of the coronavirus crisis. Stakeholders say the added breathing room could yield better projects in the distressed areas that the program is meant to help, while also providing them with an infusion of new cash later this year.
Our July issue also features an update on Kearny Point, the growing business center at the site of a former shipbuilding complex in Hudson County. Owner and developer Hugo Neu Corp. has made an especially timely addition to the 130-acre campus, unveiling a collection of 200 private offices for small and medium-sized businesses. As our story explains, the building now serves as an attractive option for tenants in the age of COVID-19, providing an alternative to the crowded, collaborative spaces that run counter to social distancing guidelines.
Elsewhere in this edition, we recap a recent panel discussion at NAIOP’s I.CON program in late June, where experts said that industrial space remains a coveted asset class for investors, despite the ongoing uncertainty of the pandemic. Held virtually this year, the high-profile event still featured the types of insights and analysis that nearly 1,000 annual attendees have come to expect — not to mention providing continued hope for the booming logistics sector.
I know many of you have returned to the office or are back in the field. You may also be eager to turn the page on the second quarter, which I certainly understand after what we’ve seen in recent months. Yet it’s worth repeating that the industry remained incredibly productive during our statewide stay-at-home order. As I’ve said before, let’s hope that is a sign of things to come as we look ahead to the fall. It clearly won’t be business as usual, especially with the unpredictability of the coronavirus, but the industry is proving that it can adapt and continue to operate during a difficult time.
Until then, please continue to stay safe and don’t hesitate to reach out with your feedback, questions or story ideas. Thanks for reading and enjoy the issue!