News Type: Roundtable Weekly

Senate Advances Bipartisan Permitting Reform Bill

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On Nov. 9, the Senate voted 73–25 to begin consideration of the Bipartisan American Affordability and Jobs Act (S. 5653), clearing a key initial procedural hurdle but stopping short of approving the legislation. The bill would overhaul federal permitting for energy and infrastructure projects and modernize transmission planning. (U.S. Senate, Nov. 9)

State of Play

  • Bipartisan sponsors: The bill was introduced Sept. 30 by the leaders of the Senate Environment and Public Works Committee (Chair Shelley Moore Capito (R-WV) and Ranking Member Sheldon Whitehouse (D-RI)) and the Energy and Natural Resources Committee (Chair Mike Lee (R-UT) and Ranking Member Martin Heinrich (D-NM)). A revised version was released Nov. 7. (Bipartisan Policy Center, Oct. 2)
  • NEPA reforms: The bill would set deadlines for environmental reviews, narrow who can challenge projects in court, and limit the time to file challenges under the National Environmental Policy Act (NEPA) to 150 days, matching the House-passed SPEED Act. (Bipartisan Policy Center, Oct. 2)
  • Transmission and grid costs: The bill would give the Federal Energy Regulatory Commission (FERC) backstop authority to site certain interstate transmission lines. It would also require data centers to pay their full share of grid upgrade costs so other customers do not subsidize them. (White & Case, Nov. 11)

What’s Next

  • Senators will consider amendments, addressing concerns including provisions that would relax federal reviews of a project’s impacts on historic properties. Some Democrats who voted to begin debate have indicated they may oppose the final bill depending on the amendments. (Heatmap, Nov. 9)
  • A final Senate vote could come as early as the week of Nov. 16. The House would then need to consider the legislation before the lame-duck session ends.  (White & Case, Nov. 11)
  • President Trump said Nov. 9 that the bill “hasn’t been fully negotiated.” It remains unclear how his comments could affect the legislation’s prospects. (Heatmap, Nov. 9)

The Real Estate Roundtable (RER) continues to support permitting reform to improve energy affordability and meet growing electricity demand. RER has urged Congress to provide certainty for approved projects and eliminate redundant federal reviews that delay affordable, reliable power. (Roundtable Weekly, Oct. 2, 2026)

Ninth Circuit Allows California Scope 1 and 2 Reporting to Proceed, Blocks Scope 3 and Climate Risk Disclosures

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On Nov. 9, the U.S. Court of Appeals for the Ninth Circuit ruled that California can enforce certain corporate climate disclosure requirements while blocking others that likely violate the First Amendment. (Foley & Lardner, Nov. 9)

State of Play

  • Scope 1 and 2 reporting: The court allowed California to enforce Senate Bill (SB) 253’s requirement that companies doing business in the state with more than $1 billion in annual revenue disclose emissions from their direct operations (“Scope 1”) and purchased energy (“Scope 2”). The Nov. 10 deadline for initial Scope 1 and 2 reports remained in effect, requiring covered companies to comply while litigation continues. (Foley & Lardner, Nov. 9)
  • Scope 3 reporting: The court found that SB 253’s requirement to report indirect supply chain and value chain emissions (Scope 3), scheduled to begin in 2027, likely violates the First Amendment. The requirement remains on hold while litigation continues. (Ninth Circuit ruling, Nov. 9)
  • Climate-related financial risk reports: The court maintained its freeze on SB 261, which requires companies doing business in California with more than $500 million in annual revenue to report climate-related financial risks. Enforcement remains on hold while litigation continues. (National Law Review, Nov. 9)

What’s Next

  • The case returns to the district court, which will determine, among other issues, whether the Scope 3 provisions can be separated from the rest of SB 253. Covered companies, including commercial real estate firms, remain subject to Scope 1 and 2 reporting requirements. (Cooley, Nov. 10)

The Real Estate Roundtable (RER) continues to advocate for practical, consistent climate disclosure requirements that limit compliance burdens for commercial real estate owners and operators. RER has raised concerns about mandatory Scope 3 reporting, particularly the challenges of obtaining reliable emissions data from tenants and other third parties, and has urged policymakers to avoid costly, overlapping reporting requirements. (Roundtable Weekly, Nov. 21, 2025)

CRE Leaders Gather in Washington to Discuss Post-Election Priorities, Tax Policy, Energy, Global Risks, and More

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The Real Estate Roundtable’s (RER) Fall Roundtable Meeting convened members in Washington this week, on the heels of the historic midterms, to discuss prospects for year-end legislation and the new Democratic leadership’s expected 2027 agenda for tax, housing, banking, and energy policy.

The two-day program covered prospects for reauthorizing the Terrorism Risk Insurance Program, EB-5 legislation, and passing permitting reform before year-end, opportunities for bipartisan agreement on ways to expand housing supply in the next Congress, and what shifts in tax, trade, housing, and energy policy could mean for commercial real estate investment. (RER’s Fall 2026 Policy Priorities and Executive Summary)

Roundtable Leadership

  • At his first Fall Roundtable Meeting as RER Board Chair, Owen D. Thomas (Chairman and CEO, BXP) welcomed members to the policymakers dinner at the National Archives and said he looks forward to leading The Roundtable’s advocacy in Washington and working with newly elected members of Congress to show how commercial real estate supports job creation and economic growth.
  • Speaking just steps from the U.S. Constitution at the National Archives, RER President and CEO Jeffrey D. DeBoer recalled how RER drew on the Fifth Amendment’s Takings Clause and a white paper it commissioned from former U.S. Solicitor General Paul Clement to challenge a provision in the ROAD to Housing Act that would have required companies that build single-family rental homes to sell them after seven years. “Ultimately, that forced-sale proposal … was removed by the language in that very document sitting right behind us,” DeBoer said.
  • DeBoer also spoke about RER’s challenge coin, which members received. “Traditionally, challenge coins represent camaraderie, trust, and a shared mission among leaders,” he said. “This Roundtable coin represents the strength of bringing top real estate owners, lenders, managers, and trade associations together to speak as one cohesive voice in Washington.”

Speakers & Policy Issues

Roundtable members engaged in policy discussions with the following guests:

  • (L-R): Marc Short (former Chief of Staff to Vice President Mike Pence and Founding Partner, Advance Strategies Consulting) and Terry McAuliffe (former Governor of Virginia and Democratic National Committee Chair) joined for a bipartisan post-election conversation on the state of American politics, the shifting balance of power in Congress, and the economic issues driving voters.
  • (L-R): Rep. Richard Neal (D-MA) (Ranking Member, House Ways and Means Committee), who is expected to return as committee chair in January, joined John Fish (Chairman and CEO, Suffolk; Past Chair, RER) to discuss economic policy priorities for the next Congress, Affordable Care Act tax credits, tariffs, the federal deficit, and how zoning and land-use decisions affect housing supply and affordability. (RER’s Tax Policy Priorities)
  • (L-R): Mike Sangaline (Deputy Assistant Secretary of Building Technologies and Development, U.S. Department of Energy (DOE)) and Anthony Malkin (Chairman and CEO, Empire State Realty Trust; Chair, RER’s Sustainability Policy Advisory Committee) discussed how energy production, grid access, ENERGY STAR’s transition to DOE, and rising electricity demand from data centers are shaping commercial real estate development. (RER’s Energy Policy Priorities)

Next on RER’s meeting calendar is the all-member State of the Industry Meeting (SOI) on Jan. 28-29, 2027, in Washington, D.C., which will include policy advisory committee meetings.

Democrats Outline Tax Policy Agenda Following Midterm Elections

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Following Democrats’ sweeping victories in the midterm elections, the lawmakers expected to lead Congress’ two tax-writing committees outlined their priorities for the next Congress, emphasizing affordability, corporate taxation, trade policy, and congressional oversight. (Politico | Sen. Wyden Press Release, Nov. 4)

State of Play

  • Senate Finance Committee: Sen. Ron Wyden (D-OR) is positioned to regain the chairmanship he held from 2014-2015 and 2021-2025. Sen. Wyden indicated he intends to focus the Finance Committee on raising taxes on billionaires and corporations, strengthening tax enforcement, reducing health care costs, and reasserting congressional authority over trade and tariffs. Wyden also signaled plans for expanded oversight of major corporations. (Sen. Wyden Press Release, Nov. 4 | The Hill, Nov. 5)
  • House Ways and Means Committee: Rep. Richard Neal (D-MA) in line to return as Chairman, outlined an affordability-focused agenda that includes reducing costs for families, addressing health care, strengthening federal programs, and developing a more sustainable trade policy. (Rep. Neal Statement, Nov. 4)
  • Democrats are expected to focus on affordability and high costs and will be looking for ways to use the tax code to address those areas while sharpening their message ahead of the 2028 campaign, which will also likely lead to further focus on raising additional tax revenue from upper-income taxpayers. (PoliticoPro, Nov. 6)

Opportunity Zones

  • On Nov. 5, the Treasury Department and IRS announced the designation of 6,576 Qualified Opportunity Zones, including 2,594 rural census tracts, under the newly permanent Opportunity Zone program. The designations take effect Jan. 1, 2027, and will remain in place for 10 years. (Treasury Press Release, Nov. 5)
  • The new map is significantly smaller than the opportunity zone 1.0 map, which had 8,764 QOZs. (Bisnow, Nov. 5)
  • The updated program establishes a permanent framework for OZs, with new designations every 10 years, tighter eligibility criteria, and enhanced incentives for rural investment.
  • Since its creation in 2017, the program has attracted more than $110 billion in private investment to designated communities. (Treasury Press Release, Nov. 5)
  • “Today’s announcement of the new designations will help direct private investment to these communities, expand economic opportunity, support job creation, and unlock long-term growth in these communities across the country,” Treasury Sec. Scott Bessent said in a statement. (Bisnow, Nov. 5)
  • RER advocacy: RER’s Opportunity Zone Working Group met with Treasury and IRS officials in August and has emphasized the need for clear transition rules to ensure existing projects can continue under the permanent program. (Roundtable Weekly, Sept. 25)

Data Center Legislation

  • The legislation builds on Sen. Wyden’s August framework. It would eliminate 100% bonus depreciation for data center assets, restrict Opportunity Zone benefits, prevent certain privately held real estate investment trusts (REITs) from treating newly acquired data center rents as qualifying income, and exclude data center equipment and construction costs from research tax credits. (Grant Thornton, Nov. 3 | Roundtable Weekly, Aug. 7)
  • With Sen. Wyden positioned to chair the Senate Finance Committee, the proposal could receive greater attention in the next Congress as lawmakers from both parties examine data center tax incentives and their impact on energy costs and communities. (Roundtable Weekly, Oct. 23 | Roundtable Weekly, Sept. 25)

Roundtable on the Road

His presentation covered implementation of recent tax legislation, opportunities to support housing development and downtown revitalization, and proposals that could significantly change the tax treatment of real estate assets and investment.

What the Midterm Elections Mean for Commercial Real Estate

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This week, Democrats won control of the House and Senate in Tuesday’s midterm elections. The shift in congressional leadership will put tax policy, housing affordability, and energy policy front and center for the 120th Congress. The first test comes Monday, when the Senate is expected to take a procedural vote on bipartisan permitting reform.

State of Play

  • Rep. Hakeem Jeffries (D-NY) is in line to become House Speaker, and Sen. Chuck Schumer (D-NY) is expected to return as Senate majority leader.
  • Sen. Schumer called the results a “generational remake of the Senate majority” and told reporters the first thing he would do is “reduce people’s costs and work the legislative process so it does.” (Commercial Observer, Nov. 5)
  • House Speaker Mike Johnson (R-LA) told Republican colleagues Wednesday that he would not seek a leadership post in the next Congress. House Majority Leader Steve Scalise (R-LA) and House Judiciary Committee Chair Jim Jordan (R-OH) are both running for minority leader. (Axios, Nov. 4)
  • Control of both chambers gives Democrats greater leverage over government funding and oversight, while President Trump’s veto power limits prospects for major policy reversals.  (Cushman&Wakefield, Nov. 4)
  • “The Roundtable looks forward to working with lawmakers in both parties to continue policy work to expand housing supply, modernize permitting, and support long-term investment in communities across the country,” said Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable (RER).

Tax Policy

  • Sen. Ron Wyden (D-OR) and Rep. Richard Neal (D-MA) are expected to return as chairs of Senate Finance and House Ways and Means, respectively.  (PoliticoPro, Nov. 4)
  • Both outlined their priorities this week, with Sen. Wyden announcing plans to raise taxes on the wealthiest households and corporations, reassert congressional authority over trade, and expand oversight. Rep. Neal emphasized affordability for working families and rebuilding relationships with U.S. trading partners. (The Hill, Nov. 5)
  • Sen. Wyden has previously released comprehensive proposals to tax unrealized gains, fundamentally reform the taxation of partnerships, and recharacterize all carried interest as ordinary income.
  • Rep. Neal is scheduled to speak at next week’s Fall Roundtable Meeting.
  • Issues to watch include housing supply incentives; partnership tax reform; tax increases on wealth, capital gains, and carried interest; potential new tax burdens on data centers and single-family rental homes; and retaliatory tax measures affecting foreign investment.

Energy Policy

  • Democrats are repositioning clean energy as one part of a broader focus on affordability and the economy. (Axios, Nov. 6)
  • Energy-related issues to watch: Sen. Wyden has said he plans to introduce legislation to restore clean energy tax credits. The broader debate could include efforts to restore Inflation Reduction Act incentives for clean electricity production and investment credits, building efficiency incentives, and credits for electric vehicles and charging equipment. (PoliticoPro, Nov. 3 | Axios, Nov. 6)
  • Data centers: Democrats are weighing stronger federal ratepayer protections, including proposals to require large facilities to pay for grid upgrades or secure their own power. (PoliticoPro, Nov. 5)
  • The bipartisan Ratepayer Protection Act (H.R. 9340), which passed the House 417–3 before stalling in the Senate, could serve as a starting point for stronger federal enforcement. Some Democrats also support temporary construction moratoriums. (PoliticoPro, Nov. 4)
  • Committee leadership: Reps. Jared Huffman (D-CA) and Frank Pallone (D-NJ) are expected to lead House Natural Resources and Energy and Commerce, respectively. Sen. Martin Heinrich (D-NM) is in line to chair Senate Energy and Natural Resources, and Sen. Jeff Merkley (D-OR) could lead Environment and Public Works.  (PoliticoPro, Nov. 3)
  • Appropriations leadership: Sen. Patty Murray (D-WA) is in line to chair Senate Appropriations and could also lead its Energy and Water Development Subcommittee. Sen. Lisa Murkowski (R-AK) is expected to become the full committee’s top Republican and could hold the same role on the Interior and Environment Subcommittee. Those assignments would give both senators a central role in funding negotiations for federal energy and environmental programs. (Bloomberg, Nov. 4)

Permitting Reform

  • The Senate is scheduled to vote Monday, Nov. 9, on whether to advance the bipartisan American Affordability and Jobs Act of 2026 (S. 5653). The bill would revise federal environmental reviews and streamline permitting for energy and infrastructure projects, including electric transmission. It needs 60 votes to advance. (Axios | PoliticoPro,  Nov. 6)
  • The election has complicated the bill’s path. Rep. Jeffries raised concerns through a spokesperson, saying that the bill needs more input from House Democrats. Rep. Huffman has called for waiting until the next Congress. Sen. Heinrich and Sen. Sheldon Whitehouse (D-RI) are pressing for action this year, and Senate negotiators have been working on an amendment to address House concerns. (Politico, Nov. 5 | Punchbowl News, Nov. 6)
  • The Trump administration said Friday that the Pentagon would advance nine new onshore wind projects that had been delayed by security reviews and are the subject of ongoing litigation. The move comes as the White House seeks support for bipartisan permitting reform ahead of the Senate’s Nov. 9 procedural vote. (Politico, Nov. 6)

Capital & Credit and Housing

  • Senate Banking: Sen. Elizabeth Warren (D-MA) is the leading contender to chair the committee in the next Congress. Both Senate Banking and House Financial Services are expected to step up oversight of financial institutions, consumer lending practices, and the administration’s approach to financial regulation. (Time | Reuters, Nov. 5)
  • House Financial Services: Rep. Maxine Waters (D-CA) formally launched her bid Friday to return as chair, a day after Rep. Sean Casten (D-IL) entered the race. Current Chair Rep. French Hill (R-AR) is expected to become the committee’s ranking member. On the Housing and Insurance Subcommittee, Rep. Emanuel Cleaver (D-MO) is seeking the chair, while Rep. Mike Flood (R-NE) is expected to serve as ranking member. (PoliticoPro, Nov. 5 | Reuters, Nov. 6)
  • Housing: Outlining her agenda, Rep. Waters called for expanding affordable housing programs, reforming mortgage finance, and passing legislation to “AI proof’” the financial system and economy. (Rep. Waters letter, Nov. 6)
  • As federal agencies implement the bipartisan 21st Century ROAD to Housing Act, lawmakers could consider follow-up legislation in the next Congress. (Commercial Observer, Nov. 5 | PoliticoPro, Nov. 6)

What’s Next

  • The Senate’s first order of business after the election is a Nov. 9 procedural vote that will test whether the bipartisan American Affordability and Jobs Act (S. 5653) can move before year-end. (Punchbowl News, Nov. 6)

If government funding or surface transportation legislation carries over into the new Congress, either could provide an opening for energy and climate measures. If the highway bill is not addressed in the lame duck, it will be the biggest transportation policy issue for Congress next year. (PoliticoPro, Nov. 3 | Punchbowl News, Nov. 4)

Fed Holds Rates Steady as Inflation Concerns Persist

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The Federal Reserve held its benchmark interest rate steady at 3.75–4 percent on Wednesday, pausing after September’s quarter-point increase as policymakers assess persistent inflation and economic conditions. Two officials dissented in favor of another rate hike, underscoring continued pressure to tighten monetary policy. (Federal Reserve, Oct. 28 | The Wall Street Journal, Oct. 29)

State of Play

  • The Federal Open Market Committee (FOMC) voted 10–2 to maintain the current target range, with Federal Reserve Governor Lisa Cook and Cleveland Fed President Beth Hammack favoring a 25-basis-point increase. The decision follows September’s unanimous vote to raise rates for the first time since 2023. (Federal Reserve, Oct. 28 | Federal Reserve, Sept. 16)
  • The Fed characterized economic activity as “expanding at a strong pace,” supported by resilient consumer spending, strong productivity growth, and robust capital investment.
  • Inflation remains elevated, and policymakers emphasized the importance of additional economic data in determining the appropriate policy stance. (Federal Reserve, Oct. 28)
  • The October decision leaves open the possibility of another rate increase before year-end as the Fed continues working toward its 2 percent inflation target. (Federal Reserve)

Why It Matters

  • Elevated interest rates continue to weigh on commercial real estate (CRE) borrowing costs, refinancing activity, and investment. Continued inflation pressures and elevated Treasury yields can increase financing costs for property owners and developers.
  • Nearly $983 billion in U.S. CRE mortgages are estimated to mature in 2027, underscoring the importance of accessible financing as borrowers face higher debt service costs and potentially more challenging refinancing conditions. (RER Policy Priorities, Capital & Credit)
  • The rapid buildout of artificial intelligence (AI) data centers is adding complexity to the Fed’s inflation outlook. Data center investment is supporting economic growth while straining electricity supply and construction capacity. (Politico, Oct. 28)
  • Higher rates could weigh on housing and other interest-sensitive sectors without substantially slowing spending by well-capitalized technology companies. (Politico, Oct. 28)

The FOMC’s final scheduled policy meeting of 2026 will take place Dec. 8–9, when officials will release an updated Summary of Economic Projections.

RER and Broad Coalition Urge Congress to Direct ENERGY STAR Funding to DOE

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The Real Estate Roundtable (RER) led a broad coalition of organizations representing real estate, consumer products, manufacturing, retail, technology, and energy efficiency advocates in a letter to congressional appropriators Thursday, urging Congress to provide FY 2027 funding for ENERGY STAR directly to the Department of Energy (DOE) as it assumes leadership of the program from the Environmental Protection Agency (EPA). (Coalition Letter, Oct. 29)

Coalition Advocacy

  • Federal funding is currently set to expire on December 11. When Congress reconvenes after the midterms, it is expected to consider FY’27 spending legislation through this coming Sept. 30.
  • The coalition urged Congress to continue directed FY’27 appropriations for ENERGY STAR, specifically requesting that program dollars be provided to DOE to align federal funding with the agencies’ new responsibilities.
  • The issue attracts support across the ideological spectrum. In addition to major real estate organizations, signatories range from the American Gas Association and the National Association of Manufacturers, to the U.S. Green Building Council, to the national association representing all state energy offices.
  • The letter emphasized that appropriating funds directly to DOE would strengthen congressional oversight, ensure that expenditures reflect DOE’s lead implementation role, and stabilize the program’s continuity during the transition period.
  • The coalition called for at least $33 million in FY’27 funding, consistent with the amount appropriated last year.  (Bill text (page 85) | Roundtable Weekly, Jan. 9)

ENERGY STAR Transition to DOE

  • In August, DOE and EPA released a transition plan outlining how DOE will assume leadership and core operations of ENERGY STAR, with the transition expected to be completed by July 2027. (Roundtable Weekly, Sept. 11)
  • DOE’s Office of Critical Minerals and Energy Innovation (CMEI) will oversee the program, including its information technology portfolio, Portfolio Manager, and related datasets. (Roundtable Weekly, March 6 | Roundtable Weekly, Sept. 11)

Why It Matters

  • ENERGY STAR has helped American families and businesses save more than $500 billion in energy costs since 1992. The coalition emphasized that the voluntary public-private partnership supports energy affordability, competitiveness, and broader national energy objectives. (Coalition Letter, Oct. 29)
  • RER and its coalition partners have consistently advocated for preserving ENERGY STAR as a voluntary federal program, supporting DOE’s new leadership role and urging Congress to maintain adequate funding and oversight. (Roundtable Weekly, April 17 | Roundtable Weekly, April 3)

RER and our coalition partners will rally congressional appropriators to include ENERGY STAR funding in FY’27 spending legislation considered during the upcoming lame duck session.

RER Releases 2026 Annual Report

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The Real Estate Roundtable (RER) is pleased to share our 2026 Annual Report: A Framework for Growth: Advancing Smart Policy for Tomorrow’s Living and Working Spaces, highlighting RER’s advocacy over the past year and priorities for strengthening investment, expanding housing supply, ensuring affordable and reliable energy, enhancing homeland security, and supporting economic growth. (Full Report)

Roundtable Leadership

  • This year’s report details how RER’s engagement helped preserve and enhance critical real estate tax rules, eliminate a proposed seven-year forced-sale requirement for certain rental housing, protect ENERGY STAR, shape financial regulatory proposals affecting commercial real estate, and much more. (Introduction)
  • It also underscores the industry’s role in supporting jobs, local tax bases, and retirement security. “Commercial and multifamily real estate remain bedrock pillars of the American economy, directly contributing to job creation, local tax bases, and retirement security,” the report states.
  • The report recognizes Kathleen McCarthy Baldwin’s leadership as chair, including expanded member outreach through Roundtable on the Road, deeper participation across policy committees, and strengthened communications.
  • As Owen Thomas, RER Chair and Chairman and CEO of BXP, begins his tenure, RER will build on this foundation through continued outreach and direct engagement with members across the country, ensuring its advocacy reflects regional conditions and the real-world impact of federal policy decisions.
  • “In an era marked by shifting capital liquidity, rising electricity demand, rapid growth of artificial intelligence (AI) and data centers, evolving energy mandates, and a critical shortage of affordable housing, passive policy adaptation is not an option,” said Jeffrey DeBoer, RER President and CEO. (Read Intro)

Explore the 2026 Report

RER’s FY2026 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:

The publication also includes:

  • Introduction: A review of the year’s impact, leadership transition, and priorities ahead.
  • Member Engagement: Highlights of member participation and engagement with policymakers.
  • Membership: RER’s members, board of directors, and policy advisory committee leadership.

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

Fed Beige Book Highlights Mixed CRE Conditions and Continued Financing Pressures

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The Federal Reserve’s October Beige Book, released Oct. 14, found that economic activity grew slightly or modestly across most districts, while commercial real estate conditions varied by region. Higher borrowing costs, tighter credit conditions, and rising construction expenses continued to weigh on investment and development. (Beige Book, Oct. 14 | GlobeSt., Oct. 16)

Regional CRE Trends

  • New York: Commercial property sales slowed as rising interest rates reduced demand, despite strong Manhattan office leasing and industrial demand driven by data centers. Banks reported slightly tighter credit standards for commercial mortgages, with concerns over interest rate exposure and refinancing costs. (New York Fed)
  • Chicago: Construction and real estate activity declined slightly, although commercial real estate activity remained unchanged overall. Financial conditions tightened modestly, while major development projects competed for construction capacity and electrical equipment needed for data centers. (Chicago Fed)
  • National Outlook: Nine of the 12 Federal Reserve districts reported slight to moderate economic growth, while three reported little change. Businesses continued to face higher costs from energy, tariffs, and insurance, along with shortages of specialized technical and skilled-trade workers. (Federal Reserve)

Why It Matters

  • Nationally, businesses continued to report higher input costs, including pressure from tariffs, insurance, and energy prices. Several districts also noted continued shortages of specialized technical and skilled-trade workers, which could affect construction costs and development timelines. (Federal Reserve, Oct. 14)
  • Financing pressures and rising development costs remain key challenges for CRE investment. Higher borrowing costs and tighter lending standards can complicate refinancing and property transactions, while labor shortages and competition for construction materials and infrastructure capacity can delay new projects. 

Roundtable on the Road

  • This week, RER President and CEO Jeffrey DeBoer joined Kristen Silverberg, Business Roundtable’s President and COO and incoming President and CEO, for a policy and business panel at Marriott International’s North America (MINA) Conference. The discussion focused on policy issues affecting the economy, job creation and investment.
  • The panel also addressed the upcoming elections and next year’s legislative outlook. DeBoer and Silverberg encouraged business leaders to engage with state and local officials, noting that nearly 50 members of Congress previously served as mayors or governors.

RER will release its Q4 2026 Sentiment Index Report in the coming weeks, providing an updated assessment of commercial real estate executives’ views on market conditions, capital availability, and the outlook for the industry.

Energy Policy Update: Permitting Reform, Data Center Growth and Tax Proposals

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A bipartisan group of former senior administration officials is urging Congress to advance permitting reform legislation, citing growing energy demand, infrastructure delays, and threats to U.S. economic competitiveness. The push comes as new research highlights the economic impact of data center development and Senate Democrats introduce proposals to reshape federal energy and data center tax incentives. (The Hill | Axios, Oct. 21)

Permitting Reform

  • Nineteen former economic and national security officials from five presidential administrations urged congressional leaders to pass bipartisan permitting reform legislation, warning that lengthy approval processes are hindering infrastructure development, economic growth, and national security. (The Hill, Oct. 21)
  • Signatories included former Treasury Secretaries Janet Yellen, Steven Mnuchin, Timothy Geithner, Henry Paulson Jr. and Robert Rubin, along with former Secretary of State Mike Pompeo and seven former chairs of the Council of Economic Advisers.
  • The officials endorsed the bipartisan American Affordability and Jobs Act, introduced Sept. 30 by Sens. Shelley Moore Capito (R-WV), Mike Lee (R-UT), Martin Heinrich (D-NM) and Sheldon Whitehouse (D-RI), which would reform federal environmental review and permitting processes. (Roundtable Weekly, Oct. 2)
  • The officials warned that permitting delays are particularly concerning as artificial intelligence and data center development drive electricity demand. Faster infrastructure approvals could expand electricity supply, reduce reliance on costly on-site generation and help lower consumer energy costs.

RER Advocacy

  • The Real Estate Roundtable (RER) has consistently supported bipartisan permitting reform to strengthen grid reliability, lower energy costs, and accelerate infrastructure investment.
  • In a December 2025 letter to congressional leadership, RER urged passage of the bipartisan SPEED Act (H.R. 4776), emphasizing that duplicative federal reviews delay the delivery of affordable, reliable electricity to homes and commercial buildings. (RER Letter, Dec. 8 | Roundtable Weekly, Dec. 12)

Data Center Economic Impact

  • A new U.S. Chamber of Commerce study found that data centers generate substantial economic activity, employment, and local tax revenue, underscoring their role in supporting communities and infrastructure investment. (U.S. Chamber of Commerce, Oct. 15)
  • By the Numbers: According to the Chamber’s analysis, economic impacts generated by a typical 50-megawatt data center include:
  • 5,200 jobs annually supported statewide during a two-year construction phase, generating approximately $680 million in economic activity.
  • $114 million in local tax revenue projected over five years in Prince William County, Virginia, with similar benefits estimated for communities in Texas, Georgia, and Ohio.
  • The findings come as lawmakers debate how to accommodate growing data center electricity demand while protecting consumers from higher infrastructure costs.
  • RER has also urged the North American Electric Reliability Corporation (NERC) to develop clear, workable grid reliability standards that reflect the distinct responsibilities of data center owners, operators, and tenants. (Roundtable Weekly, Sept. 18)
  • Meanwhile, congressional Democrats plan to ramp up oversight of the Trump Administration’s efforts to avoid federal environmental standards for data centers if they take control of the House and/or Senate after the midterms. (PoliticoPro, Oct. 22)

Data Center Tax Proposals

Sen. Ron Wyden (D-OR)
  • Senate Finance Committee Ranking Member Ron Wyden (D-OR) released draft legislation Friday that would impose an excise tax on data center operators and eliminate several federal tax incentives for data center investment, including bonus depreciation, Opportunity Zone benefits and research and development tax credits. (Press Release | Senate Finance Committee Summary | Draft Legislation, Oct. 23)
  • The proposal builds on Wyden’s August white paper, which also called for restrictions on certain data center investments through real estate investment trusts (REITs). (Roundtable Weekly, Aug. 7)
  • The proposed changes would create tax penalties specifically targeting data centers by excluding them from longstanding incentives available to other capital investments. (Roundtable Weekly, Aug. 7)

Clean Energy Tax Incentives

  • Sen. Wyden (D-OR) also outlined plans to restore wind and solar tax credits and expand the Inflation Reduction Act’s Direct Pay Program if Democrats regain control of the Senate. (Politico, Oct. 22)
  • A new Senate Finance Committee Democratic staff report found that nearly $2.5 billion in direct payments went to tax-exempt entities during the program’s first two years, supporting renewable energy and other clean energy investments. (Sen. Wyden Press Release, Oct. 22)

The November elections will shape prospects for permitting reform, data center regulation and federal energy tax policy, with several proposals potentially returning to the agenda during the lame-duck session or the next Congress.