The Real Estate Roundtable (RER) is deeply saddened by the senseless loss of the four individuals who were tragically struck down by a gunman on Monday in Midtown Manhattan. We mourn the loss of these brilliant professionals, dedicated public servants, and treasured family members and extend our deepest condolences to their families, friends, colleagues, and communities.

• Among those killed were employees from member companies, Blackstone and Rudin Management. The victims include Wesley LePatner, 43, a Yale graduate and senior managing director at Blackstone who led Core+ Real Estate and served as CEO of Blackstone Real Estate Income Trust (BREIT), and Julia Hyman, 27, a Cornell graduate working as an associate at Rudin Management. (WSJ, July 29) (NYT, July 29)

• RER President and CEO Jeffrey DeBoer issued this statement:

• “The Real Estate Roundtable is deeply saddened by the tragic shooting that occurred Monday in New York City. On behalf of our membership, I extend our heartfelt condolences to the families and loved ones of the victims, including those from Rudin Management and Blackstone, and to all those impacted by this senseless act of violence.

• RER will continue to work closely with the FBI and other federal, state and local agencies to share critical intelligence, strengthen building security, support first responders, and advance national policies that promote public safety while protecting individual rights.”

RER’s HSTF & RE-ISAC

• Through our Homeland Security Task Force (HSTF) and Real Estate Information Sharing and Analysis Center (RE-ISAC), RER actively collaborates with the FBI, Department of Homeland Security, and other local and federal agencies.

• Recent events highlight the need for continued vigilance and preparedness across the commercial facilities sector, especially given increasing risks from violent crime, civil unrest, cyber-attacks, and international tensions.

These longstanding partnerships are vital to strengthening public-private coordination and emergency preparedness.

Major changes to the federal tax code’s clean energy incentives, signed into law on July 4 by the One Big Beautiful Bill Act (OB3 Act), continue to generate questions regarding the future of building-related solar, storage, and similar projects.

Why It Matters

• The new law accelerates the phase-down of tax credits, shortens eligibility timelines, and adds new foreign content and control rules, creating an urgent planning window for energy-related building investments.

• Regarding energy-related building investments, projects that begin construction in 2025 and after should consider:
  • Tax credits that phase-out over the next few years (such as the Section 48E “tech-neutral” credit for solar, the Section 179D deduction and 45L credit for energy efficiency projects, and the Section 30C credit for EV charging stations);
  • Tax credits that remain available well into the 2030s (such as Section 48E for energy storage); and
  • Permanent options for “full expensing” that can accelerate tax write-offs of energy-related and other building investments, regardless of Section 48E or other tax credit availability.

Executive Order Tightens Rules    

• A July 7 White House executive order directs the U.S. Treasury Department to consider revising the IRS’s longstanding “5% safe harbor” test to determine a project’s “beginning of construction” date, which could further tighten tax credit eligibility for investments such as rooftop solar. (Roundtable Weekly, July 11)

• The EO also directs Treasury to strictly enforce the OB3 Act’s scheduled termination of clean energy production and investment tax credits under Sections 45Y and 48E of the Internal Revenue Code. Updated guidance is anticipated in August. (Bloomberg, July 7) (Utility Dive, July 9)

• In a similar move, on Tuesday, Interior Secretary Doug Burgum issued a final order requiring high-level departmental scrutiny of solar projects on public lands, and on private property that requires Interior’s approval (such as solar panels on historic buildings, or installed as part of projects impacting federally-listed endangered species habitat). (Politico, July 18).   

Market Impact

• A new POLITICO analysis estimates that more than 662,000 jobs and $565 billion in investment tied to clean energy projects announced since 2017 could be at risk under the OB3 Act. (PoliticoPro July 30)

• Many of these projects depended on long-term planning horizons and Biden-era tax incentives, now constrained by tighter deadlines and new eligibility rules.

EPA Endangerment Finding

• In related news, the Trump administration this week proposed eliminating the 2009 “Endangerment Finding.” This Obama-era decision underpins federal regulations to address climate change and limit greenhouse gas emissions from power plants, vehicles, and other sources. (EPA Press Release, July 30) (Politico, July 29)

• The EPA’s proposal only impacts federal-level rules. Governors and officials in California, Colorado, New York, and elsewhere pledged to continue their own climate regulatory efforts, citing the need for science-based action. (BBC News, July 29; The Hill, July 29; Colorado Governor statement; NYS-DEC statement.)

• In this regard, efforts by EPA Administrator Lee Zeldin to rescind the Endangerment Finding will likely have minimal impact on state and local Building Performance Standards (BPS) that aim to reduce energy use and emissions from commercial and multifamily properties. (See RER’s 20-Point BPS Guide (Oct. 2024)).

• The EPA’s proposal is not yet final and will undergo a 45-day public comment period once published in the Federal Register. (PoliticoPro, July 29)

As regulatory guidance evolves, RER will continue advocating for clear, workable policies that support long-term real estate energy investments.

The Senate Banking Committee this week unanimously advanced the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, a sweeping housing reform package led by Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) aimed at addressing the housing crisis by expanding supply, improving affordability, and increasing oversight. It focuses on streamlining regulations, incentivizing construction, and supporting vulnerable populations like veterans and the homeless. The bill also seeks to modernize housing finance and disaster recovery programs. (Senate Banking Press Release, July 29)

Why It Matters

• The Real Estate Roundtable (RER) submitted a comment letter in support of ROAD Act ahead of the committee’s first bipartisan housing markup in over a decade. (Letter, July 28)

• The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. The bill also directs the Department of Housing and Urban Development (HUD) to launch new grant and loan programs to address home repairs, health hazards, and support local zoning and development reforms. (The Hill, July 29)

• Sen. Scott highlighted the bipartisan effort, noting that housing access and affordability remains a top economic concern for Americans. “For far too long, Congress believed this problem was too big to solve. Today, we’re taking not a step—but we’re taking a leap in the right direction in a bipartisan fashion,” Sen. Scott said in remarks at the markup. (Senate Banking Press Release, July 29)

• The legislation contains more than 40 provisions contributed by every committee member and reflects a coordinated effort to modernize housing policy at the federal level. (Politico, July 29 )

• RER President and CEO Jeffrey DeBoer emphasized the legislation’s “smart, incentive-based approach” to removing regulatory obstacles and encouraging a broader range of housing options.

• “The ROAD Act aligns federal incentives with local decision-making in a way that will unlock private capital, enhance housing supply, and support long-term economic resilience,” DeBoer said.

Key Provisions in the ROAD Act

• Incentives for Housing Supply: Expands development opportunities in Opportunity Zones and near public transit, encourages adaptive reuse of vacant buildings, and supports modular and manufactured housing production.

• Zoning and Regulatory Reform: Directs HUD to publish best practice frameworks for state and local zoning and land use to reduce barriers to housing production.

• Streamlined Federal Programs: Coordinates HUD, Department of Agriculture (USDA), and Department of Veterans Affairs (VA) efforts to eliminate redundant rules and improve efficiency.

• Community Development Incentives: Rewards communities that expand housing supply with Community Development Block Grant (CDBG) allocations under the Build Now Act.

• Rental and Loan Modernization: Raises RAD program caps and updates Federal Housing Administration multifamily loan limits to match market conditions.

• Disaster Recovery and Resilience: Permanently authorizes CDBG-Disaster Recovery and establishes a HUD office to support housing stability after disasters.

RER continues to work with Congress and the administration to address housing affordability challenges and to advance policies that will expand housing supply and economic stability.  

This week, the Federal Open Market Committee (FOMC) voted 9-2 to hold rates steady. Two Trump-appointed Fed governors, Michelle Bowman and Christopher Waller, voted against the decision, marking the first FOMC meeting since 1993 in which more than one board governor dissented from the majority.

The Fed's Decision

• Fed officials continue to follow a "wait-and-see" approach regarding the impact of tariffs on the economy and the question of who will ultimately bear the costs.

• The central bank left borrowing rates unchanged at 4.25 percent to 4.5 percent after meeting on Wednesday, despite an aggressive push from President Trump to slash borrowing costs to 1 percent. (Financial Times, July 30)

• The FOMC's post-meeting statement expressed only a couple of changes in its views on economic conditions since its last meeting in June.

• "The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," read the statement. At the FOMC’s June meeting, the committee had a more optimistic view, saying the economy "continued to expand at a solid pace." (CNBC, July 31)

• Fed Chair Jerome Powell was committed to making sure any one-time increases in prices didn’t lead to more persistent inflation. "We want to [lower rates] efficiently… If you move too soon, you wind up maybe not getting inflation all the way fixed and you have to come back [and raise rates]. That’s inefficient. If you move too late, you might do unnecessary damage to the labor market," said the chair." (WSJ, July 30)

Implications for CRE

• Wednesday's hold, which was widely expected, is unlikely to push investors in any new direction, as U.S. CRE capital markets are already outperforming forecasts this year. (BisNow, July 30)

• In parallel, many lenders have started the process of taking enforcement actions on loans past their maturity date while also tracking what may happen with interest rates before executing. (Commercial Observer, July 30)

• The Fed’s decision reinforces findings from RER’s Q2 2025 Sentiment Index, which indicated that the CRE executives expressed a decline in market confidence, as policy uncertainty, rising costs, and investor caution continue to cloud the outlook. (RW, June 20)

Looking Ahead

• Focus will now turn towards the September FOMC meeting, as the central bank confronts competing signals about the health of the U.S. economy. (WSJ, July 30)

• The Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, rose last month, suggesting that tariffs may be driving some prices higher. (CBS News, July 31)

• However, new economic data this week suggested that the U.S. economy so far seems to have avoided significant tariff-related inflation. (Semafor, July 30)

• The Commerce Department said U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a seasonally and inflation adjusted 3% annual rate in the second quarter. That is up from a 0.5% contraction in the first quarter. (Wall Street Journal, July 30)

• Despite some encouraging signs, Chair Powell’s reluctance to signal a September rate cut was perceived as hawkish. (Financial Times, July 30)

• In the meantime, the coming months will likely come with more debate among political leaders around the role of the Fed in the U.S. economy.

• President Trump's displeasure with the Fed's resistance to cut rates has twice taken him to the verge of trying to fire Powell, spooking markets and raising concerns about the central bank's independence. (Axios, July 31)

Chair Powell is expected to speak at the Jackson Hole Economic Symposium on August 22. With the labor market weakening, inflation holding steady, and political pressure mounting, the speech could offer hints about the likelihood of a rate cut in September. (Barrons, July 30)

The Roundtable’s policy news digest will resume publication on Friday, September 5, 2025

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