1. The Great Tax Race
How the World’s Fastest Tax Reform Package Could Impact Commercial Real Estate
Report Visuals

2. Overview of Provisions Affecting CRE Industry
Low/No Impact
Medium Impact
High Impact
Source: Joint Committee on Taxation, House Ways and Means Committee, PwC, Cushman Wakefield Research

3. Distribution of Investible Commercial Real Estate by Holder Taxable Structure
% of Total
Source: RCA, Preqin, Cushman & Wakefield Research, November *Tax-exempt includes Endowments, Pension Funds, Sovereign Wealth Funds, Educational & Religious Entities, Non-profits and Government Based on Preqin data assumes, that 90% of equity fund, investment manager and open-ended fund holdings ultimate investors are tax-exempt

4. Moderate positive impact Moderate negative impact
Real estate investors benefit, some more than others; much depends on which version passes
Passive investors in pass-through entities likely to benefit substantially from lower rates under the House plan, but their eligibility for tax deductions are limited by wage provisions under the Senate proposal.
REITs and publicly-traded partnerships, however, would be eligible for the full deduction without regard to the wage limitation.
Should the Senate proposal be enacted, expect to see a shift over time towards REITs, as well as conversions to corporate structures.
Moderate positive impact
Moderate negative impact
Minimal Impact
Multifamily / renting economics
Single-family homes / home ownership
Office
Pass–through entities, REITs, Corporations
Student housing
Retail / Industrial
Medical office / healthcare
Real estate investment market
High SALT income states - California, New York, New Jersey
Low SALT states – Texas, Florida
Source: Cushman & Wakefield Research, December 2017

5. New and Existing Home Sales
Gap Between New and Existing Persistent Since Crisis
Source: U.S. Census Bureau, National Association of Realtors

6. The report and graphics are not intended to provide tax advice
The report and graphics are not intended to provide tax advice. Any tax information provided in this document is not intended or written to be relied upon for tax planning purposes. You should seek advice based on your particular circumstances from an independent tax advisor.
©2017 Cushman & Wakefield.
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