Recent surveys show support for the notion that the fundamentals underpinning commercial real estate will be stronger in 12 months than they are today. This is thanks in part to the belief that rents will rise and the idea that the benefits of the new federal tax law, including the Opportunity Zone program, will bring capital off of the sidelines.
Developers, state officials face dual task with Opportunity Zone projects
Amid the rollout of the new federal Opportunity Zone program, developers and public officials are trying to balance two key objectives: Identifying shovel-ready projects — allowing investors to maximize the tax benefits of the law — and steering capital to low-income areas that weren’t already attracting investment and may have higher barriers to entry. The state believes it can check both boxes with the right coordination and by layering in the subsidies that have helped revitalize many of New Jersey’s cities and downtowns.
