Author: abigail_grenadier

DeBoer Spotlights CRE Priorities, Calls for Unity at Connect Apartments 2025

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(L-R): Hessam Nadji (Marcus & Millichap), Barry Altshuler (Equity Residential), Tom Bannon (California Apartment Association), Jeffrey DeBoer (Real Estate Roundtable), Daniel Ceniceros (Connect Media)

At Connect Apartments 2025 in Los Angeles this week, Real Estate Roundtable (RER) President and CEO Jeffrey DeBoer delivered the keynote Q&A session, outlining top legislative and regulatory priorities in the coming months.

Remarks

  • His remarks covered implementation of new tax rules on bonus depreciation and expensing, expansion of the Low-Income Housing Tax Credit, policies to encourage new housing supply, efforts to enhance energy grid access, and preparation for the scheduled 2027 expiration of the Terrorism Risk Insurance Act (TRIA).
  • Recognizing that his remarks came on Sept. 11, DeBoer emphasized the broader role of industry leaders in fostering collective action.
  • “For the past 24 years, our industry and its leaders have supported individual, business, and policy actions to respond to and prevent terrorism. Today we face a new reality that also requires a collective response,” he said.
  • He continued, “Our personal, social, and political discourse clearly has spiraled in a very dangerous direction. Many are now calling on political leaders to tone down their divisive rhetoric. We agree. But we also strongly believe that political leaders should not act alone. The Real Estate Roundtable, and our leaders, now urge that the millions of people in our industry work to find boundaries to inciteful rhetoric by rejecting actions and language that vilify and denigrate those whose views differ from our own.”

Next Wednesday, the House Financial Services Housing and Insurance Subcommittee will hold a hearing on “The Reauthorization of the Terrorism Risk Insurance Act of 2002.” RER will continue to engage on TRIA renewal and related policy issues.

HUD Innovative Housing Showcase Highlights Affordability and Need for Reform

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Housing affordability remained a central issue in Washington this week, with congressional hearings, a special Housing Showcase event, fireside chats, and the introduction of new housing legislation all contributing to the increasing momentum for reform.

HUD Innovative Housing Showcase Highlights Market Solutions

  • This week also marked the return of the Department of Housing and Urban Development’s (HUD) Innovative Housing Showcase on the National Mall in Washington, D.C., which ran from Sept. 6-10.

  • The event featured model homes, manufactured and 3D-printed structures, and new building technologies aimed at reducing construction costs, expanding supply, boosting efficiency, and spotlighting public-private partnerships. (HousingWire, Sept. 5)

  • Coinciding with the event, Rep. Mike Flood (R-NE), chairman of the House Financial Services Subcommittee on Housing and Insurance, and Rep. Emanuel Cleaver (D-MO) introduced the Streamlining Manufactured Housing Standards Act. (HousingWire, Sept. 10)

  • The bipartisan bill seeks to remove regulatory uncertainty, preserve affordability, and promote manufactured housing as a scalable solution to the nation’s housing shortage.

Fireside Chat with Chairman Scott and Secretary Turner

  • On Sept. 9, as part of the Housing Showcase, Senate Banking Committee Chairman Tim Scott (R-SC) joined HUD Secretary Scott Turner for a fireside chat to discuss housing priorities and the Renewing Opportunity in the American Dream (ROAD) to Housing Act. (Press release)

  • Sec. Turner underscored the importance of working in coordination with the private sector. “Public-private partnerships are key to overcoming the housing issue we have in our country,” said Sec. Turner. “We want to do the best job we can from a HUD standpoint to work with our private-sector partners to bring about solutions for the American people.” (Watch Discussion)

  • Meanwhile, Sen. Scott highlighted the ROAD to Housing Act as proof that Republicans and Democrats can come together on housing policy. “It started off as my bill, but it became our bill… We got every member on the left and every member on the right to have a piece of the pie.”

  • The ROAD to Housing Act was unanimously approved by the Senate Banking Committee in July, and now awaits a vote in the Senate.

Industry Urges Cost-Effective Energy Policies at Hearing on Housing

  • On Wednesday, the House Energy and Commerce Subcommittee on Energy held a hearing titled “Building the American Dream: Examining Affordability, Choice, and Security in Appliance and Buildings Policies,” to assess the impact of federal energy regulations on housing costs. (Watch hearing)

  • National Association of Home Builders (NAHB) Chairman Buddy Hughes testified that restrictions on energy choice, appliance standards, and mandates on energy codes are making new homes less affordable for most buyers.
  • “Our members are on the front lines of an affordability crisis. Seventy-five percent of households can’t afford a median-priced new home, and half the renters in this country spend over 30 percent of their income on housing costs. New Washington mandates will only make this crisis worse,” said Hughes. (NAHB Testimony)

Looking Ahead

  • The Federal Reserve will decide next week whether to reduce interest rates, which could bring much-awaited relief from elevated home borrowing costs. (Realtor.com, Sept. 11)
  • Meanwhile, reports suggest that President Trump may declare a national housing emergency this fall. Treasury Secretary Scott Bessent confirmed that “everything is on the table.” (Fox News, Sept. 10 | Realtor.com, Sept. 10)

RER will continue to engage with policymakers and industry leaders to promote bipartisan legislation and regulatory reforms that expand the housing supply and improve affordability.

Roundtable Releases 2025 Annual Report

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The Real Estate Roundtable (RER) is pleased to share our 2025 Annual Report, A New Era for America’s Buildings: Policy to meet increased energy demands, new technology, and evolving living and working environments.

Roundtable Leadership

  • This year’s report highlights how RER’s engagement drove policy wins in tax, capital and credit, housing, energy, and homeland security, amid one of the most intense legislative years in recent memory.
  • It also underscores commercial real estate’s vital role in powering jobs, growth, and communities nationwide, while ensuring our industry’s trusted voice is heard at the highest levels in Washington.
  • “The pace and complexity of policy this past year has been unprecedented, requiring rapid and well-coordinated responses,” said Jeffrey DeBoer, RER President and CEO. “Thanks to the engagement and expertise of our members, policy committees and national real estate partners, we have met each legislative challenge with substance, speed and credibility. I believe the past 12 months have been among the most challenging and most successful in our history.”
  • “In the year ahead, we will continue to evolve how we communicate our mission, align our membership with the future of the industry and focus on the most urgent issues,” said Kathleen McCarthy, RER Chair and Global Co-Head of Blackstone Real Estate. “Real estate anchors our communities and touches every part of American life—from where people live and work to how businesses grow. As the nation faces a housing crisis and urgent energy challenges, public policy must support a strong, resilient real estate sector that drives solutions, fuels economic growth and improves quality of life and opportunity for all.”

Explore the 2025 Report

  • RER’s FY2025 Annual Report details the organization’s mission and recent activities, and offers potential policy solutions to today’s pressing and far-reaching industry challenges, including:

  • Intro — featuring Q&A with Kathleen McCarthy and Jeffrey DeBoer

Printed copies of the Annual Report are currently being mailed to members. If you would like additional copies, please email agrenadier@rer.org

Roundtable Urges First Circuit Court of Appeals to Preserve Employment Tax Exemption for Limited Partners

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The Real Estate Roundtable (RER) filed an amicus brief last month with the First Circuit Court of Appeals in Denham Capital Management LP v. Commissioner, a case that challenges the IRS’s restrictive interpretation of the “limited partner exception” from self-employment (SECA) taxes under section 1402(a)(13) of the tax code. (Amicus Brief, Aug. 15)

Why It Matters

  • Income-producing real estate—rental housing, neighborhood shopping centers, office buildings, etc.—is predominantly owned and operated in partnership form. In 2022, there were over 2.2 million real estate partnerships in the United States, with nearly 9.6 million partners.
  • The Self-Employment Contributions Act imposes Social Security and Medicare taxes on net earnings from self-employment. The SECA tax rate on earnings above $250,000 is 3.8%. While the tax applies to a broad range of trade or business income, Congress expressly exempted limited partners from SECA in the Social Security Amendments of 1977.
  • Legislative proposals (including the House version of the Build Back Better Act) and proposed regulations have attempted unsuccessfully to extend the 3.8% SECA tax or the 3.8% net investment income tax to limited partners.
  • More recently, the IRS has undertaken an aggressive effort to redefine what it means to be a limited partner by challenging taxpayers and litigating the issue in several cases before the Tax Court.

Roundtable View

  • Real estate partnerships have relied for decades on longstanding tax law as it relates to limited partners and the SECA exception.
  • In Denham and related cases, the Tax Court “imposed a judge-made test and concluded contrary to decades of established state law that a limited partner must be a ‘passive investor,’” notes the Roundtable amicus brief.
  • On the contrary, “state law in the run-up to the 1977 Amendments tells an entirely different story—one that remains true today: limited partners have routinely provided key business services to their partnerships without losing their limited liability status.” (Amicus Brief, Aug. 15)
  • The Tax Court’s 2023 Soroban ruling wrongly introduced a federal “passivity” requirement that is unmoored from statute, legislative history, and Treasury’s own prior interpretations. (TaxNotes, Sept. 10)
  • “A shift in the federal tax definition of a limited partner could alter underlying partnership economics, increase tax burdens, and create significant uncertainty for real estate and other pass-through businesses,” said Real Estate Roundtable President and CEO Jeffrey DeBoer. “Such changes need to go through Congress and withstand legislative scrutiny.”

Background

  • The Roundtable amicus brief was prepared by President’s Council Member Isaac Wheeler and his colleagues at Sullivan & Cromwell LLP, in consultation with RER’s Tax Policy Advisory Committee (TPAC).

Next Steps

The First Circuit’s decision in Denham could have nationwide implications for how partnerships are treated under SECA. A ruling against the Tax Court’s passive investor test would reinforce state law’s central role in defining “limited partner” status.

Treasury Briefs Lawmakers on OB3 Act Tax Cuts as Section 899 Debate Resurfaces

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Section 899

  • In a Sept. 9 meeting, Treasury Assistant Secretary for Tax Policy Ken Kies told House Republicans that the department would support reviving Section 899 if Europe fails to exempt U.S. companies from the global minimum tax. (Bloomberg Law, Sept. 10)
  • The measure was originally dropped from the reconciliation bill after the G7 pledged to exempt the U.S. from the Organization for Economic Co-operation and Development (OECD) Pillar Two taxes. (Reuters, June 30)
  • Section 899 would impose escalating penalties on companies and individuals from jurisdictions applying “unfair” foreign taxes. 
  • Senate Finance Chair Mike Crapo (R-ID) and House Ways and Means Chair Jason Smith (R-MO) said they are prepared to reconsider the proposal if needed. (PoliticoPro, Sept. 9)
  • “We will absolutely pass that bill” if European finance ministers don’t honor the U.S.’s international tax structure, Chairman Smith said Tuesday. He added that such legislation could be included in a second budget reconciliation bill. (Bloomberg Law, Sept. 10)
  • The Real Estate Roundtable (RER) supports modifications to the proposed Section 899 measure that would exempt passive, noncontrolling, minority investment in U.S. real estate in order to protect an important source of financing and capital.
  • If revived without changes that exempt passive investment in US businesses and assets, Section 899 could negatively impact U.S. commercial real estate by applying to sovereign wealth funds, foreign insurers, and other noncontrolling, minority investors — key sources of equity for large-scale projects (Roundtable Weekly, June 27)
  • During negotiations for the OB3 Act, RER and other industry groups warned that the tax would deter foreign investment, weaken capital formation, increase borrowing costs, and dampen property values. (Roundtable Weekly, June 6)
  • A tentative G7 understanding must still gain acceptance among 140 OECD participants, many of whom are reluctant to grant the U.S. special treatment. Meanwhile, the White House and House Republicans are targeting OECD funding through rescissions and appropriations. (PoliticoPro, Sept. 10)

Energy Tax Incentives

  • Kies also briefed lawmakers on Treasury’s plans to implement provisions of the OB3 Act and fielded questions about recent guidance narrowing eligibility for certain wind and solar projects. (PoliticoPro, Sept. 9)

Government Funding

  • The government runs out of money on Sept. 30, and Republican leaders are split on how long to extend current funding. (The Hill, Sept. 9)
  • GOP fiscal hawks and the White House want a stopgap bill through January or beyond to press spending rescissions and partisan reconciliation measures. (Punchbowl News, Sept. 10)
  • Top appropriators in the House and Senate are nearing a deal on a package of three funding bills paired with a stopgap measure to avert a shutdown, extending government funding until Nov. 20. The House could take it up as soon as next week. (Punchbowl News, Sept. 12)

Speaker Mike Johnson (R-LA) faces pressure from President Trump and OMB Director Russ Vought to back a longer-term plan, while Senate Republicans such as Majority Leader John Thune (R-SD) are urging a cleaner, narrower resolution to avoid a shutdown fight.

Stabilizing Market Conditions Drive Optimism in Q3 Sentiment Index

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The Real Estate Roundtable’s Q3 2025 Sentiment Index shows increased confidence among industry executives as market conditions stabilize and sector-led growth emerges. The overall Index registered a score of 67—up 13 points from Q2—with notable increases in both the Current (63) and Future (71) indices. (Full Report)

Roundtable View

  • RER President and CEO Jeffrey DeBoer said, “Our Q3 Sentiment Index results show that market conditions have continued to stabilize in a meaningful way, supported by improved supply and demand. Commercial real estate executives are increasingly optimistic that the next 12 months will bring continued improvement. That said, certain property types continue to face headwinds, and capital access remains uneven across markets and sectors. Even so, the prevailing sentiment is that stability is returning and opportunities are emerging.” (Press Release, Aug. 14)
  • DeBoer added, “The provisions in the One Big Beautiful Bill Act should help accelerate this momentum—expanding housing supply, revitalizing communities, spurring job-creating investment nationwide, and strengthening the broader economy. Coupled with improving debt capital availability and stabilizing asset values, these policies set the stage for renewed growth. Moving forward, industry leaders and policymakers must continue to work together to promote investment, ensure credit access, and address persistent supply-demand imbalances in housing and other high-need property sectors.” (ConnectCRE, Aug. 14)

Topline Findings

The Q3 Sentiment Index topline findings include:

  • The Q3 2025 Sentiment Index registered an overall score of 67, an increase of 13 points over the previous quarter. The Current Index registered a score of 63, a 13-point increase over Q2 2025. The Future Index posted a score of 71 points, an increase of 13 points over the previous quarter, reflecting sentiment that operating conditions have largely stabilized. Occupancy and demand are holding, and values appear to have bottomed. Participants expect modest, sector-led growth, yet acknowledge lingering headwinds for weaker property types.
  • Sentiment around general market conditions has markedly increased since last quarter (Q2). Only 10% of respondents believe that general market conditions are worse than this time last year, and 56% of respondents believe that general market conditions are better than this time last year. Almost three-quarters (73%) of Q3 survey participants expect general market conditions to show improvement one year from now. Multifamily, data centers, and NYC office shine while industrial supply is overbuilt.
  • Half of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 32% believing asset prices have increased and 18% believing they have declined. Looking ahead, the outlook is optimistic: 59% expect asset prices to rise over the next year, 32% believe asset values will remain stable, and only 9% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last year are muted, with 50% of respondents believing equity availability is unchanged compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 65% said the availability of debt capital has improved from last year. Looking forward, 55% of respondents believe that equity capital availability will be better in one year, and 48% believe debt capital availability will be better.

Market Dynamics

  • Survey participants emphasized the sector-specific nature of today’s market, with performance tied closely to location, asset quality, and loan maturity schedules. Sample responses noted that conditions feel “far steadier than we have seen in recent years,” while others highlighted that “quality product will still get funded” despite a “haves and have-nots” equity environment. (ConnectCRE, Sept. 2)
  • The Federal Reserve’s Beige Book released this week, noted that while overall economic momentum remains muted, commercial real estate showed resilience, especially in data center construction.
  • Districts such as Philadelphia, Cleveland, and Chicago reported a surge in development, fueled by the push to deploy AI and select infrastructure projects. The Fed described this trend as a rare bright spot for CRE in an otherwise cautious market, while conditions in other property sectors varied widely. (GlobeSt. Sept. 4)
  • The commercial real estate industry continues to face persistent challenges from a shortage of skilled labor and rising construction costs, underscoring the urgent need for workforce development and training initiatives.
  • Labor Secretary Lori Chavez-DeRemer, joined Punchbowl News Thursday to discuss workforce innovation, calling for more apprenticeship and training programs to address the growing construction labor shortage. (Punchbowl News, Sept. 5)

RER’s Q3 survey was conducted in July by Chicago-based Ferguson Partners. Read the full Q3 report.

Update: What CRE Needs to Know About Energy Policy

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

Energy Tax Incentives

  • The OB3 Act accelerates the phase-down of certain tax credits, shortens eligibility timelines, and adds stricter foreign content and control rules. Projects beginning construction in 2025 and beyond 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

Solar “Beginning of Construction”

Workers on sustainable energy project on rooftop of building
  • The timing of when rooftop solar projects are deemed to “begin construction” is crucial for determining tax credit eligibility under the OB3 Act’s accelerated phase-down of the Section 48E credit.
  • RER, Nareit, NAIOP, and ICSC submitted a joint letter to Treasury on Aug. 8 urging continued reliance on both the Safe Harbor and Physical Work Tests. (Letter, Aug. 8)
  • On Aug. 15, the IRS issued Notice 2025‑42, preserving the Safe Harbor for rooftop solar projects of 1.5 MW or less, which includes most CRE rooftop solar projects and maintains their eligibility for Section 48E credits (for as long as they remain available). (Clean Energy Council, Aug. 18)

EPA ENERGY STAR

  • The status of the ENERGY STAR program should become clearer as part of the “phase 2” reorganization plan of the Environmental Protection Agency (EPA), expected to be implemented by the end of September, as per a White House budget office memo. (EPA press release, July 18) (Politico, July 17).
  • RER and multi-industry coalition partners advocated strongly for Senate and House Appropriations Committee actions this summer, which would provide ample federal spending for ENERGY STAR in FY’2026 starting on Oct. 1. (Roundtable Weekly, July 25).
  • Meanwhile, ENERGY STAR recently certified 131 buildings nationwide under its voluntary new NextGen program, available for highly energy efficient buildings that also opt to reduce emissions and use renewable energy.

California Guidance on Climate Reporting

  • The California Air Resources Board (CARB) released draft guidance this week for companies required to publicly report on climate-related financial risks under state law SB 261.
  • Quantifying and reporting Scope 1, 2, and 3 emissions will not be mandatory in the initial reporting period under California’s law, which applies to companies with annual worldwide revenue greater than $500 million. (PoliticoPro, Sept. 2 | RER’s fact sheet on SB 261 and SB 253, Sept. 2023)
  • The new reporting requirements are expected to start in 2026. Final rules from CARB are expected by December. (ESGToday, Sept. 4)

Housing Affordability and Energy Codes

  • Next Tuesday, Sept. 9, the House subcommittee focused on energy policy will hold a hearing examining the impact of residential building energy codes on housing affordability. (Energy Subcomm. Press release, Sept. 2)
  • According to the memo prepared for the hearing, construction that aligns with the 2021 version of model residential energy codes can add $31,000 to the price of a new home, “and take up to 90 years for a home buyer to recoup the payback value.”
  • Witnesses at the hearing include representatives from the National Association of Home Builders (NAHB) and the natural gas utility serving the Washington, D.C. metro area.

RER will continue advocating to the Trump administration and Congress for clear, workable policies that support long-term real estate energy investments.

Roundtable CEO Discusses Measures to Boost Housing Supply at Capitol Hill Summit

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Congress returned from recess this week with housing affordability at the forefront, as lawmakers, industry leaders, and advocates launched new legislation, coalition efforts, and regulatory proposals aimed at expanding supply and lowering barriers to residential development.

Summit on Housing Affordability

  • The National Summit on the Housing Affordability Crisis convened Sept. 3 on Capitol Hill and featured House Democratic Leader Hakeem Jeffries (D-NY), Sen. Ruben Gallego (D-AZ), and other lawmakers calling for bold action to expand and improve the affordability of housing nationwide. Rep. Jimmy Gomez (D-CA) hosted the summit. (Watch Panel)
  • RER President & CEO Jeffrey DeBoer joined Rep. Gomez, Emily Cadik (Affordable Housing Tax Credit Coalition), and Will Fischer (Center on Budget and Policy Priorities) on the summit’s opening panel “Making the Housing Puzzle Work.” (Watch DeBoer’s Remarks, Sept. 3)
  • DeBoer commented, “Housing affordability is at its core a supply problem—and supply is constrained by costs, labor, and capital. We need policies that continue to expand the Low-Income Housing Tax Credit, advance the bipartisan Revitalizing Downtowns and Main Streets Act to encourage the conversion of obsolete buildings, and ensure we have the skilled workforce to build. That’s why it’s so important to bring together lawmakers and stakeholders from every sector, because housing is an essential facet of American life, and solving this crisis requires public and private partners working together to expand supply, modernize rules, and deliver homes—both owned and rental single-family and multifamily—that meet the needs of Americans.”
  • Rep. Gomez highlighted the RER-backed Revitalizing Downtowns and Main Streets Act, which would create a federal tax credit to convert underutilized and obsolete commercial properties into affordable housing.
  • Rep. Gomez framed the affordability crisis as a test of confidence in U.S. institutions, saying America “needs a housing boom” prioritizing fairness and accessibility. (Rep. Gomez Press Release, Sept. 4)

Bipartisan Housing Legislation

  • On Sept. 2, RER joined more than 20 real estate and housing groups in a Housing Affordability Coalition letter to Congress urging action on several bipartisan bills, including the HOME Investment Partnerships Reauthorization and Improvement Act, the Workforce Housing Tax Credit Act, and more. (Letter, Sept. 2)
  • The letter emphasized that housing affordability requires public–private partnerships and the removal of regulatory barriers.
  • Rep. Mike Flood (R-NE), chair of the Housing and Insurance Subcommittee, said he aims for an October markup of a bipartisan HOME program reauthorization with Ranking Member Emanuel Cleaver (D-MO). (PoliticoPro, Sept. 3)
  • Their plan would expand uses of HOME funds, reduce regulatory burdens associated with Davis-Bacon, NEPA, and Buy America compliance, and speed affordable housing development.
  • The House agenda complements the Senate’s ROAD to Housing Act, advanced in July, and includes veteran housing and land-use reform bills. (Roundtable Weekly, Aug. 1)
  • Earlier this week, Treasury Secretary Scott Bessent said the Trump administration is weighing whether to declare a national housing emergency this fall, citing zoning and building codes as barriers to new supply. (Bloomberg, Sept. 1)

Coalition Seeks Flexibility on Davis-Bacon

  • On Sept. 3, RER and a group of multifamily trade associations sent a comment letter to HUD Secretary Scott Turner urging the use of Project Labor Agreements (PLAs) to determine prevailing wages on HUD projects. (Letter, Sept. 3)
  • The letter states that PLAs would provide more accurate, local, and timely wage determinations than the Department of Labor’s (DOL) survey method, which often delays projects and raises costs.  
  • The coalition said voluntary PLAs could reduce administrative burdens, speed delivery of HUD-backed housing, and serve as a test case for future Davis-Bacon reforms.

What’s Next

With Congress back in session, housing advocates are pressing for quick action on bipartisan bills and regulatory reforms. RER will continue to push for policies that expand supply, modernize outdated rules, and foster partnerships to address the nation’s affordability crisis.

Lawmakers Return to DC for Showdown Over Government Funding

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Congress returned from recess this week to heavy debate over government spending and the looming risk of a shutdown. Meanwhile, a new push for permitting reform gained steam.

Back in Session

  • With Congress back in session, legislative leaders have less than 30 days to pass a funding bill. Votes from both Democrats and Republicans will be needed to keep the government open.

  • However, Democratic anger over the White House’s use of “pocket rescissions” has created additional complications. The White House has used these rescissions to impound billions of dollars in congressionally approved funding, sparking opposition from Democrats and even some Senate Republicans. (Punchbowl News | The Hill, Sept. 3)

  • Senate Majority Leader John Thune (R-SD) is seeking bipartisan support for an FY’26 appropriations package, but it remains uncertain whether Congress will pass all funding bills or a short-term continuing resolution before the Sept. 30 deadline. (Punchbowl News, Sept. 3)

  • In addition, the National Flood Insurance Program (NFIP) is set to lapse on Sept. 30 unless reauthorized. The importance of the NFIP to the health of commercial real estate markets has grown as the number of billion-dollar natural disasters and the cost of insurance premiums continue to rise. (Fact sheet)

  • In late July, the House and Senate Appropriations Committees passed provisions preserving funding for the ENERGY STAR program in FY’26.
  • The Real Estate Roundtable (RER) will continue working with policymakers and a broad coalition of organizations to ensure that these provisions are reflected in the final appropriations package. (Roundtable Weekly, July 25)

Roundtable on the Road

  • House GOP leaders, are pressing ahead with early talks on another major domestic policy package, though momentum is uncertain as hopes for passage by year’s end fade.
  • Senate Majority Leader John Thune didn’t definitively rule out a second megabill in a brief interview but acknowledged “there would have to be a reason to do it.” (PoliticoPro, Sept. 4)
  • RER’s SVP & Counsel Ryan McCormick discussed these dynamics this week at the University of Utah Ivory-Boyer Real Estate Center Fall Board Retreat, where he outlined the OB3 Act’s impact on CRE, RER’s advocacy on tax policy, and what to expect this fall in Washington.

Permitting Reform Push

  • A bipartisan group of lawmakers, including House Natural Resources Chair Bruce Westerman (R-AR), Rep. Jared Golden (D-ME), and Senate Environment and Public Works Chair Shelley Moore Capito (R-WV), has not given up on efforts to reform the permitting process for energy infrastructure.

  • While the effort failed last year, Rep. Capito said that she’s seen a “convergence of clean energy folks and people like me who are all-of-the-above meeting together with an urgency.” (Politico, Sept. 2)

  • For years, energy projects of all kinds have been mired in slow, inefficient, and often years-long environmental reviews—among other issues. These problems have delayed the construction of critical infrastructure and made it more difficult for developers to realize their investments.

  • RER has strongly advocated for an “all of the above” energy strategy focused on ensuring an abundant supply of energy, advancing programs to avoid energy waste, strengthening the nation’s electric grid, streamlining federal permitting processes, and fostering innovation in artificial intelligence. Permitting reform is a critical part of achieving these objectives. (Fact sheet)

  • Permitting reform still faces an uphill battle—with policy differences on both sides of the aisle—but the renewed effort is a sign of positive momentum and continued urgency around the need for more energy infrastructure.

Looking Ahead

RER will keep engaging with policymakers on critical and emerging issues for the commercial real estate industry, particularly as momentum for permitting reform grows and congressional negotiations over the appropriations package heat up.

Stabilizing Market Conditions Drive Optimism in Q3 Sentiment Index

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(WASHINGTON, D.C.) — The Real Estate Roundtable’s Q3 2025 Sentiment Index reflects increased confidence among commercial real estate executives as market conditions stabilize and sector-led growth emerges. The Q3 Index posted an overall score of 67, a 13-point increase from the previous quarter, with notable increases in both the Current (63) and Future (71) indices.

RER President and CEO Jeffrey DeBoer said, “Our Q3 Sentiment Index results show that market conditions have continued to stabilize in a meaningful way, supported by improved supply and demand. Commercial real estate executives are increasingly optimistic that the next 12 months will bring continued improvement. That said, certain property types continue to face headwinds, and capital access remains uneven across markets and sectors. Even so, the prevailing sentiment is that stability is returning and opportunities are emerging.”

While challenges remain, industry leaders see meaningful opportunities ahead, particularly in multifamily, data centers, and select office markets.

He added, “The provisions in the One Big Beautiful Bill Act should help accelerate this momentum— expanding housing supply, revitalizing communities, spurring job-creating investment nationwide, and strengthening the broader economy. Coupled with improving debt capital availability and stabilizing asset values, these policies set the stage for renewed growth. Moving forward, industry leaders and policymakers must continue to work together to promote investment, ensure credit access, and address persistent supply-demand imbalances in housing and other high-need property sectors.”

The Q3 Sentiment Index topline findings include:

  • The Q3 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, an increase of 13 points over the previous quarter. The Current Index registered 63, a 13-point increase over Q2 2025. The Future Index posted a score of 71 points, an increase of 13 points over the previous quarter, reflecting sentiment that operating conditions have largely stabilized: occupancy and demand are holding, and values appear to have bottomed. Participants expect modest, sector-led growth, yet acknowledge lingering headwinds for weaker property types.
  • Sentiment around general market conditions has markedly increased since last quarter (Q2). Only 10% of respondents believe that general market conditions are worse than this time last year, and 56% of respondents believe that general market conditions are better than this time last year. Almost three- quarters (73%) of Q3 survey participants expect general market conditions to show improvement one year from now. Multifamily, data centers, and NYC office shine while industrial supply is overbuilt.
  • Half of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 32% believing asset prices have increased and 18% believing they have declined. Looking ahead, the outlook is optimistic: 59% expect asset prices to rise over the next year, 32% believe asset values will remain stable, and only 9% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last year are muted, with 50% of respondents believing equity availability is unchanged compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 65% said the availability of debt capital has improved from last year. Looking forward, 55% of respondents believe that equity capital availability will be better in one year and 48% believe debt capital availability will be better.

Survey participants noted that the market is increasingly sector-specific, with performance tied closely to location, asset quality, and loan maturity schedules. Comments highlighted stabilizing fundamentals, renewed deal competition, and a narrowing bid-ask spread in transactions.

Some sample responses from participants in the Sentiment Index’s Q3 survey include:

“The market feels largely stable. There is still uncertainty about what lies ahead, yet conditions are far steadier than we have seen in recent years.”

“Real estate is a local business, and this cycle underlines how unique every market and product type really is. There is no ‘one-size-fits-all’ answer; it all depends on where you are, how favorable your product is, and the date of your loan maturity.”

“Debt is liquid with tight spreads; on the equity side it’s a ‘haves and have-nots’ market. Quality product will still get funded.”

Data for the Q3 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in July. See the full Q3 report.

The Real Estate Roundtable (RER) brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.