NETAR CMLS Blog
New ‘Opportunity Zone’ Tax-Break Rules Offer Flexibility to Developers - link to state, regional, local zones
WASHINGTON—The Trump administration, trying to accelerate tax-advantaged investment in low-income areas, offered generous definitions and rules Friday in a long-awaited package of regulations.
The Treasury Department designed the rules for the Opportunity Zone program to give businesses enough flexibility and certainty to start making major investments, senior department officials said.
The program was a small piece of last year’s tax law and has been attracting intense attention from real-estate developers and fund managers who have been soliciting wealthy investors holding unrealized capital gains.
For the full report go to https://www.wsj.com/articles/new-opportunity-zone-tax-break-rules-offer-flexibility-to-developers-1539948600
Follow this link for a listing of local and regional opportunity zones https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx?mod=article_inline
RPR is excited to announce practitioners now have the option to include traffic counts in RPR Commercial Property and Trade Area Reports. The data will display actual historical counts as well as Kalibrate’s projected counts, which are based on the last published traffic count, local area trend data and up-to-date demographic information.
Commercial real estate pros can use the new data to:
• Identify and understand traffic patterns and historical trends.
• Analyze and forecast potential customer traffic to detect high demand opportunities.
• Evaluate locations for retail facilities, restaurants, real estate developments, cell phone towers, billboard advertising and more.
Read the full report at http://blog.narrpr.com/commercial/traffic-counts-added-to-rpr-commercial-reports/
That's a stark contrast to an economy that's booming. Consumer confidence is high. The region is at full employment. Wages are up – not by a lot but they're up. Retail sales and sales tax collections are doing quite well. In fact, Kingsport-Bristol has the best sales tax collection market share performance in Northeast Tennessee.
Attribute some of this contrast to the fact that commercial real estate data is a lagging economic indicator – especially the local commercial real estate market. It doesn't lend itself to the short-term analysis that residential real estate affords. While residential real estate and the housing market frequently leads the rest of the economy out of bad times local commercial real estate often trails the residential market by a year to a year-and-a-half.
By The Numbers
According to the Market Edge's mid-year commercial building permit report, there were 216 new permits issued in the Tri-Cities region during the first six months of this year compared to 301 last year. NE Tenn. counties included in the report include: Carter, Greene, Hawkins, Sullivan, Washington. Scott and Washington counties in SW Virginia are also included. New permit totals have slowly declined every year since 2011. The dollar number attached to this year's permits was $72,865,805, down 37% last year. From an East Tennessee perspective, the Tri-Cities in the only area with a mid-year decline in permits and permit value.
There were 92 transactions of CMLS listings between January and the end of June compared to 112 last year. Listings originated during the same period totaled 183, up from 156 last year. While a CMLS listing receives the broadest exposure, some commercial listings are not included on other platforms. CMLS listings can be searched at https://www.netarcmls.us/ . The site also has a featured listing section, a directory of commercial members and a capsule report of recent deals.
At the end of August CMLS had listings for 18.7 million square feet of commercial space for sale; 724,213 square feet of commercial space for lease and 1,025 acres of land in the three-county Johnson City MSA.
Listings for the four-county Kingsport-Bristol MSA included 1.3 million square feet of commercial space for sale; 548,670 square feet for lease and 1,179 acres of land.
Although it didn't come at a time to affect conditions in the mid-year report news about the potential redevelopment of part of the old Bristol Mall to a casino has fired up interest in that market, and the region's, commercial real estate and economic evolution.
See the full report on the Commercial Real Estate page at the NETAR Web Site at https://netar.us/mid-year-commercial-real-estate-update