The Big, the Beautiful, and the Bill: What It Means for Commercial Real Estate

I’ve seen a lot of legislation in my decades as a commercial real estate broker—but few come with a name as audacious as the “One Big Beautiful Bill.” It sounds like something you’d hear shouted over the din of a campaign rally or stitched onto a souvenir T-shirt. But behind the marketing glitz lies a bill that, if passed, could reshape the commercial property business—particularly for those of us who live and work in the golden state of California.
 
Let’s break it down.
 
At its core, the bill proposes a return to 100% bonus depreciation. In plain English: property owners and developers would once again be able to expense the entire cost of certain building improvements in the year those costs are incurred. Think HVAC upgrades, lighting retrofits, or a full-blown tenant improvement package. For owners sitting on aging assets or brokers like me helping clients reposition their properties, this is a game-changer. It’s fuel for reinvestment—and it arrives just when many buildings need a refresh to stay competitive in a post-pandemic world.
 
But wait, there’s more. The bill also boosts the Qualified Business Income (QBI) deduction for pass-through entities—including many real estate partnerships—and raises the cap on the SALT deduction for individuals earning less than $500,000. For Californians, who have long borne the brunt of SALT limitations, that’s more than a footnote. It’s meaningful tax relief that could free up capital for additional investment.
 
Of course, every rose has its thorn. And this one comes in the form of Section 899—a “revenge tax” aimed at foreign investors from countries with so-called discriminatory tax laws. The details are still fuzzy, but the risk is clear: if foreign capital dries up, so too may some of the momentum behind major commercial developments, especially in coastal markets.
 
And then there’s the rollback of green energy incentives. As someone who’s witnessed the growing appetite for ESG (Environmental, Social, Governance)-friendly buildings, this move feels like a step backward. Cutting 179D deductions and other sustainability carrots might please certain constituencies, but it runs the risk of dulling progress just when tenants and investors are demanding greener spaces.
 
As of this writing, the bill has passed the House and is under active consideration in the Senate. With several provisions drawing bipartisan attention—both supportive and critical—the coming days will determine whether this sweeping legislation becomes law, gets trimmed down, or stalls altogether. CRE stakeholders are watching closely.
 
So, is this bill truly beautiful? That depends on where you stand. For investors, developers, and brokers who appreciate certainty, tax relief, and pro-growth measures—it’s attractive. For those relying on foreign capital or green incentives—it’s a mixed bag.
 
Like any piece of sweeping legislation, the devil is in the details. But if you work in commercial real estate—or if you occupy a building, own one, or hope to invest in one—this bill deserves your attention.
 
Because love it or hate it, “beautiful” bills don’t come around every day.

My Legacy Project. A Commercial Real Estate Journey

They say everyone has a book in them. Mine has been rattling around for over a decade, occasionally tapping on the inside of my skull and whispering, “It’s time.” Well, that time has finally arrived.
 
Yes, folks, I’ve embarked on a project that more than a few of you have encouraged for years: I’m writing a book. There. I said it.
 
Some of my peers have chuckled knowingly and offered congratulations. Others have asked, “What took you so long?” And a few have raised eyebrows and muttered, “After all, that’s what old guys do.” I’ll admit, I resemble that remark.
 
But this isn’t a memoir filled with nostalgic tales of the ‘good old days’ (although there might be a few of those, because let’s face it—some of them are just too good not to share). Nor is it a textbook of dry theory or recycled motivational fluff. This book will be part personal, part tactical. A blueprint of sorts—for those interested in understanding how one broker carved out a successful commercial real estate practice by focusing on fundamentals, relationships, and a few contrarian bets.
 
The tentative title? SEQUENCE: A Commercial Real Estate Success Formula – How I Became a Successful Producer and How You Can Too!Yes, it’s a mouthful. But I’m not writing this for literary awards. I’m writing it to help people in our business—especially those who are just starting out or struggling to find their stride—shortcut a few of the lessons I had to learn the hard way.
 
At its core, the book is built around a framework I’ve developed over 40 years in the trenches: SEQUENCE. Each letter stands for a key stage in the commercial real estate transaction cycle, from sourcing opportunities to expanding your practice. I’ve also included another acronym, QUALIFY, to help readers better assess the viability of a deal and the motivation of a client. (Yes, I like acronyms. No, I’m not sorry.)
 
The book will be peppered with real-life anecdotes—some triumphant, some humbling—all intended to reinforce the lessons I’ve taught in seminars, shared in columns like this one, and practiced day-in and day-out with my clients. It will also spotlight the tools and mindsets that helped me break through ceilings, bounce back from setbacks, and build a sustainable, scalable career in this wonderful and maddening business we call commercial real estate brokerage. 
 
Now, before you start placing Amazon pre-orders, I should level with you: This will take time. My goal is to finish by the end of 2025. I’ve learned that writing a book is a lot like a commercial lease negotiation—there are drafts, redlines, delays, and the occasional moment where you question everything. But there’s also joy in the process, especially when you know the outcome will serve others.
 
So, why now?
 
Because I believe we don’t just owe our clients our best—we owe it to the next generation of brokers, entrepreneurs, and business owners to pass along what we’ve learned. This book is my attempt to do just that. A legacy project, maybe. But also a practical toolkit that I hope will help someone—maybe you—get from where they are to where they want to be.
 
Stay tuned. I’ll keep you posted on the progress. In the meantime, if you’ve ever considered writing a book of your own, I have one word for you: start.
 
After all, that’s what old guys do

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 
 

What’s Really Holding Back Manufacturing in California? My Readers Had Thoughts.

When I asked whether manufacturing could make a comeback in California, I expected opinions. What I didn’t expect was how many of you would write back—with passion, perspective, and firsthand experience.
 
Several longtime brokers, business owners, and property operators reached out with stories spanning decades—many with a shared theme: California doesn’t make it easy to build or keep things here.
 
One former industrial broker recalled relocating factories throughout downtown Los Angeles in the 1980s. Then came the state’s cap-and-trade policy. Practically overnight, his relocation business dried up. Later, when he purchased a company that tested gas meters for regulatory compliance, he experienced the same policy from the other side—as a required vendor. “I saw the devastation of that rule from both careers,” he said.
 
Another reader, an industrial property owner and operator, offered this blunt assessment: “If I were younger, California wouldn’t be high on my list to start a manufacturing plant.” He lost his first building to a Caltrans eminent domain action, spending five years in court to get fair value. After relocating, his new site was downzoned for residential use, leaving him with a conditional use permit and uncertain future.
 
And then there were the comments about outsourcing—not just of jobs, but of environmental impact. One reader pointed out that many of the regulations we impose on manufacturers in California are simply sidestepped when products are made overseas. Industries like plating, painting, and circuit board production face strict scrutiny here—but far less abroad. “We all buy the China goods,” he said, “but we should at least admit we’re contributing to global environmental problems.”
 
It’s not all frustration, though. What stood out to me wasn’t just what these readers had endured—but how much they still cared. They aren’t bitter. They’re tired. Tired of unpredictable zoning, endless permitting delays, and policies that seem to penalize job creators.
 
In my previous column, I outlined five priorities for reviving manufacturing in California: regulatory reform, land use stability, energy reliability, workforce development, and targeted incentives. Based on your feedback, I’d add one more: listen to the people on the ground.
 
The decisions we make in city halls and state agencies ripple outward—sometimes for decades. Want to grow clean tech? Preserve industrial zoning. Want local jobs? Support the employers who are already here. Want sustainable supply chains? Don’t offshore our pollution.
 
California doesn’t need to be the cheapest place to manufacture. But it does need to be competitive, reliable, and forward-looking.
 
Manufacturing won’t return on sentiment alone. It requires trust, coordination, and smart policy. We still have the talent, the infrastructure, and the entrepreneurial spirit. What we need now is the will.
 
Let’s not lose the manufacturers we still have while we wait for the next reshoring trend to arrive. Let’s make California a place where building things is still possible—and worth it.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 

Don’t Just Close — Expand: The Final Step That Multiplies Your Deal’s Value

In commercial real estate, we live for the close. The lease is signed, the escrow is funded, the commission check hits your account — and we’re on to the next one, right?
 
Not so fast.
 
After more than four decades in this business, I’ve learned that what you do after a deal closes can be just as important as what you did to get it there. That’s why the final step in my deal SEQUENCE — a framework I’ve developed over years of trial, error, and refinement — is something I call “Expand.”
 
Let me back up a step. SEQUENCE is an acronym I use to describe the entire commercial real estate transaction continuum:
Source, Evaluate, Qualify, Under Contract, Execute, Negotiate & Close, and Expand.
 
Each step builds on the previous one. But it’s that last piece — Expand — where most brokers stop short. And that’s a big mistake.
 
You see, Expand is where a good transaction turns into a great reputation. It’s how you take a single successful deal and multiply its value — through visibility, credibility, and connectivity.
 
Let’s start with visibility. When a deal wraps, you have a golden opportunity to share the success with your audience. No, I don’t mean bragging with “Just closed another one!” That’s not expanding — that’s broadcasting. True visibility comes from storytelling: Who was the client? What was the challenge? How did you help solve it? And most importantly — what does their success now look like?
 
I like to position the client as the hero, and myself as the guide. A short, sincere LinkedIn post or newsletter blurb that highlights their win and the process behind it can go a long way. Bonus points if you include a photo of the building, a testimonial quote, or a link to a case study. These are powerful digital breadcrumbs that tell the market you’re active, effective, and trusted.
 
Next is credibility. When you consistently share closed deals — not just listings or market updates — your audience sees results. And results matter. I’ve had multiple referrals stem from nothing more than a prospect reading about a client I helped in their industry. That kind of third-party validation builds the kind of credibility no cold call ever could.
 
Finally, let’s talk about connectivity. Every transaction touches a dozen or more players: the client, the other broker, lenders, attorneys, title reps, contractors, city officials, neighbors. Each one of them is a potential source of future business — but only if you stay top of mind. Expanding means staying connected, circling back with a thank-you note, or looping them into the deal announcement. That one extra step often opens doors you didn’t even know existed.
 
Here’s a real-world example: A couple years back, I helped a manufacturing client relocate into a bigger, better facility in the Inland Empire. We publicized the deal in a few targeted places — LinkedIn, a trade journal, and a quick blog post. Within a month, I’d received two inquiries from other owners in the same industry asking if I could help them too. One of those turned into a six-figure assignment. All from a little “Expand.”
 
So the next time you celebrate a closing, take a breath — then take action. Publicize the win. Tell the story. Loop in your network. Because in this business, your last deal isn’t the end of the road — it’s the beginning of your next opportunity.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.

How Brokers Stay Sharp in Their Craft

Commercial real estate is not a “set it and forget it” profession.

Unlike riding a bike, where the muscle memory takes over after a long hiatus, this business requires constant recalibration. Markets shift. Lease structures evolve. Investment assumptions change. The only way to stay sharp in this craft is to become a lifelong student—formally, informally, and transactionally.

Let’s start with the basics. Every broker licensed in California is required to complete 45 hours of continuing education every four years. It’s a box we all have to check, and if we’re being honest, many approach it like a DMV renewal—something to get through rather than something to get better from.

But the best in our business don’t stop there.

Designations like SIOR and CCIM separate serious practitioners from part-timers. These aren’t vanity letters to slap on a business card—they represent real rigor. The Society of Industrial and Office Realtors (SIOR) requires a minimum production threshold, peer recommendations, and a comprehensive educational curriculum. Certified Commercial Investment Member (CCIM) designees undergo deep training in financial analysis, market dynamics, and investment strategy. Earning these designations takes time, money, and commitment. Maintaining them requires staying active and involved.

Then there’s the matter of specialized training. Good brokers know their product type. Great brokers know their client’s world. That’s why many of us attend workshops on supply chain trends, ESG regulations, or the latest in industrial automation. I’ve seen brokers immerse themselves in 1031 exchange strategy, SBA lending updates, or entitlement case law—all in service of delivering better outcomes for their clients.

But beyond the classroom and conference room, there’s the reps.

Staying sharp means doing deals. A consistent cadence of transactions forces you to stay current on market comps, landlord concessions, buyer behavior, and lender sentiment. Every negotiation teaches something new. Every transaction uncovers a wrinkle you hadn’t considered before. Repetition builds instinct—and reputation. I’ve said it before: volume is the great equalizer. If you’re not active, your skills get dull—fast.

There’s also a hidden benefit in teaching others. Over the past few years, I’ve found that leading workshops, mentoring new brokers, and writing this very column has deepened my own understanding of the business. When you have to explain a complex concept in simple terms, you either own it or you don’t. Teaching exposes gaps—and gives you a reason to close them.

The truth is, commercial real estate doesn’t reward the complacent. The best brokers I know are curious, coachable, and committed to constant improvement. Whether it’s through a formal designation, a hyper-focused seminar, or the grind of getting deals done, they’re sharpening their tools daily.

So the next time you hear someone say, “It’s just like riding a bike,” remind them: in this business, the gears are always changing.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 
 

Can We Bring Manufacturing Back to California? Here’s What It Would Take

Once upon a time, California was the beating heart of American manufacturing. From aerospace in El Segundo to semiconductors in Silicon Valley, the Golden State built things—big, bold, world-changing things. But over the past three decades, factories have shuttered, jobs have moved overseas, and California has become better known for exporting ideas than importing machinery.
 
Now, the tides are shifting.
 
COVID-19 exposed the fragility of global supply chains. Container ships stacked outside the ports of Los Angeles and Long Beach reminded us just how far we’ve outsourced our productive capacity. Talk of “reshoring”—bringing manufacturing back to the U.S.—became more than just political rhetoric. For a moment, it felt like American industry was ready to make a comeback.
 
And yet, here in California, that comeback has been more sizzle than steak.
 
So what’s standing in the way?
 
Let’s start with the obvious: cost. Industrial land in California is among the most expensive in the country. In Southern California, you’re lucky to find dirt under $50 per square foot—and in many infill areas, it’s well north of that. Add in construction costs, utilities, taxes, and the dreaded “soft costs” of entitlement and permitting, and your manufacturing project might collapse before you ever pour a slab.
 
But cost is only part of the equation.
 
Manufacturers also face a regulatory labyrinth. CEQA, AQMD, CARB—if you know those acronyms, you probably also know how difficult it is to get an industrial use permitted in this state. Even clean, tech-enabled operations must navigate lengthy environmental reviews that can stretch on for years.
 
And then there’s labor. California offers a deep talent pool—but it comes at a price. Employers must contend with one of the most complex labor codes in the nation, high workers’ comp premiums, and rising minimum wages. For many, it’s easier to head to Nevada, Arizona, or Texas, where the cost of doing business is lower and the red tape is less suffocating.
 
So, if we truly want to bring manufacturing back—not just to America, but to California—we have to get serious. That means addressing five key areas:
 
1. Regulatory Reform
Streamline environmental review for industrial projects, especially those involving clean or advanced manufacturing. Fast-track permits for uses that reduce emissions and create living-wage jobs.
 
2. Strategic Incentives
Offer tax credits, relocation grants, and training subsidies that reward companies for building here. Compete with other states—not on ideology, but on economic viability.
 
3. Energy Reliability
Manufacturing requires power—lots of it. California must ensure its grid can handle industrial demand without rolling blackouts or punishing peak rates.
 
4. Industrial Land Preservation
Zoning is destiny. Too often, cities rezone industrial land for higher-tax retail or residential uses. If we want jobs, we need to protect the land where jobs happen.
 
5. Workforce Development
Invest in vocational education, community college partnerships, and apprenticeships. We must rebuild the talent pipeline that once made California a manufacturing powerhouse.
 
We do have some bright spots. Tesla, against all odds, continues to operate in Fremont. In the Inland Empire, logistics has exploded—proving that goods still move through California even if they aren’t made here. But let’s be clear: we’ve missed major opportunities. Semiconductor plants are being built in Arizona, not Anaheim. Battery gigafactories are opening in Nevada, not Norwalk.
 
Manufacturing won’t return on sentiment alone. It will take political courage, private investment, and a willingness to rethink how California supports its industrial base. We’ve done it before. We can do it again.
 
The question is: do we really want to?

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 
 

What Drives Demand? The Forces Powering Today’s Commercial Real Estate Market

A funny thing about commercial real estate: while the buildings themselves are fixed in place, the forces that create demand for those buildings are anything but. They shift with time, trend, and turmoil—and if you’re not paying attention, you might miss the cues that tell you when and where activity will ignite.
Take lease expirations, for example. It’s one of the most fundamental drivers of deal flow in our business. When a lease winds down, a decision must be made—renew, relocate, or remain on a month-to-month basis. That single moment often becomes the catalyst for months of planning, broker engagement, site tours, financial modeling, and ultimately, action. No expiration? No pressure. And no pressure means no urgency—one of the key ingredients in getting deals done.

But leases alone don’t tell the whole story.

As we turned the corner into 2025, the tail end of 2024 gave us a master class in commercial real estate hesitation. Activity slowed not because companies lacked need, but because they lacked certainty. Three macro forces kept tenants and investors glued to the sidelines:

1. Presidential politics. Decision-makers wanted to know what kind of business climate they’d be operating in before signing on to long-term commitments. Red or blue, regulation or deregulation, tax incentives or new compliance rules—these all influence corporate planning and therefore real estate strategy.

2. Interest rate direction. The Fed kept everyone guessing. Would rates go up again? Plateau? Begin to fall? Capital markets hate ambiguity, and so do CFOs staring at lease vs. own models.

3. Consumer confidence. As goes the consumer, so goes much of our economy. Businesses took a hard look at spending patterns, savings rates, and employment numbers before deciding whether now was the right time to expand.

Add to that a steady churn of mergers, acquisitions, and dispositions, and you’ve got another strong source of demand—though not always in the ways you might expect. M&A can consolidate two footprints into one, freeing up space in one market while triggering new need in another. Dispositions, meanwhile, open up inventory for others or signal a company’s shift into a new vertical altogether.
But let’s zoom out even further.

Sometimes, real estate demand is born from entirely new industries—and those moments often follow technology breakthroughs or policy shifts. Consider:

• Electric vehicles and their supporting infrastructure: battery plants, charging stations, and parts distribution centers.
• Lithium-ion batteries, which require massive and specialized manufacturing space.
• Data centers, the digital backbones of our modern lives, quietly taking down millions of square feet with very specific utility and security requirements.

We’ve seen this before. The 1980s research and development boom created entire submarkets for tech, biotech, and medical device firms. Those buildings weren’t just shells—they were incubators for innovation.

Sometimes the spark comes from government regulation. Remember when the EPA mandated the elimination of Freon from air conditioning units? That one change sent shockwaves through the HVAC industry, creating demand for new service hubs, training facilities, and parts distribution warehouses. A political decision translated directly into square footage demand.
In short, demand drivers in commercial real estate are everywhere—you just have to know where to look.

The next wave of activity might not come from a lease expiration or a low interest rate. It might come from an emerging technology, a new federal incentive, or even a global conflict that reshapes the supply chain. Our job, as advisors, is to interpret the signals, anticipate the shifts, and help our clients position themselves ahead of the curve.

Because buildings may be stationary—but the forces behind them are always in motion.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.