Following a frenetic election year and several more years of Congressional gridlock as policymakers sparred over even the most basic items on their to-do list, 2025 brings with it a new administration and a new Congress, with Republican control over both. What does that mean for the national policy agenda, and what should commercial REALTORS® watch for?

The biggest impact to industrial and office real estate professionals will be the debate around (and ultimate passage) of legislation in response to the Tax Cuts and Jobs Act (TCJA) expiring. The TCJA was a sweeping tax reform package passed in 2017, and its provisions expire at the end of 2025, so members of Congress on the Senate Banking Committee and the House Ways and Means Committee are already working on proposals to either reauthorize it or extend it with new provisions and changes. While there are points of contention even among the Republicans about priorities and changes to be made in a tax reform package, at this early stage the question most hotly debated is the timing—whether to push for this to be an early win in 2025 or to take a longer approach by working on it throughout the year while also focusing on other issues in the meantime.

So, what in these debates should commercial REALTORS® be looking out for? The original TCJA included several policies impacting commercial real estate and practitioners, notably the 20% Qualified Business Interest Deduction under section 199A and the creation of the Qualified Opportunity Zones program. What was also notable is what was not included in the TCJA, which was any caps or limitations on the 1031 like-kind exchange provision. As policymakers on Capital Hill work on their tax bill, NAR’s advocacy is already at work pushing to make permanent the 199A Qualified Business Interest Deduction and to revisit the Qualified Opportunity Zone program— expanding and renewing its incentives in order to see its goals of increased commercial real estate investment in underserved communities come to fruition.

On top of that, NAR is taking the opportunity to push for additional policies it supports to be a part of any package, including a tax credit for converting unused or underutilized commercial properties into housing units (reintroducing the Revitalizing Downtowns and Main Streets Act from the 118th Congress which NAR was instrumental in drafting). While advocating for these provisions, NAR will also defend against harmful tax increases which may be considered as “pay-fors” for the cost of a bill (which is estimated to be at least $7 trillion). These include capping 1031s, raising capital gains, and changes to taxation of carried interests.

Of course, taxes aren’t the only policy area Capitol Hill will work on that impacts commercial real estate. In keeping with the tradition of nearly every presidency since the rule was created, the Trump administration will propose a new Waters of the U.S. (WOTUS) rule. If the rule from his first presidency is an indication, it will likely be favored by developers as more clearly defined and limiting the jurisdiction of federal actors over private property with water. Despite being bipartisan and progressing at times in both the House and Senate, Congress has yet to pass the Secure and Fair Enforcement Regulatory (SAFER) Banking Act to create a safe harbor for banks in states that have legalized cannabis to accept income derived from its sale or production. Finally, the large amount of maturing commercial real estate debt will continue to put pressure on borrowers and lenders alike, which the financial regulators will be monitoring closely.

As the 119th Congress and the second Trump administration make clear their issue priorities and positions, NAR will be at the table with policymakers from both branches and both sides of the aisle to advocate for policies that support commercial REALTORS® and the commercial real estate sector, stressing its huge impact and importance to the health of the nation’s economy overall. To stay updated on NAR’s advocacy work, please visit www.nar.realtor/advocacy.