Curated News
By: NewsRamp Editorial Staff
December 11, 2025
Year-End Real Estate Rush: Tax Benefits Drive Investment Sales Surge
TLDR
- Investors gain immediate tax advantages by purchasing commercial properties like quick-lube facilities before 2025 closes to leverage 100% bonus depreciation for higher returns.
- Recent federal legislation restored 100% bonus depreciation for automotive commercial real estate, driving year-end sales as buyers use tax strategy to maximize depreciation benefits on single-tenant net lease assets.
- This tax policy encourages investment in small-footprint commercial properties, supporting business expansion and economic activity while making commercial real estate more accessible to diverse investors.
- Quick-lube facilities offer surprising investment opportunities with full tax depreciation benefits despite their small size, attracting capital in a challenging 2025 market that required creative financing solutions.
Impact - Why it Matters
This news matters because it reveals how federal tax policy directly shapes commercial real estate investment patterns and market timing. The restoration of 100% bonus depreciation creates immediate financial advantages for investors in specific property types, particularly automotive-related assets, potentially influencing where capital flows in the coming year. For developers and property owners, understanding these tax-driven market dynamics is crucial for timing sales and maximizing returns. The shift toward private lending reflects broader financing challenges that could affect development costs and project viability. As interest rates potentially decline in 2026, retail investors may find commercial real estate becoming more attractive relative to traditional fixed-income alternatives, potentially reshaping investment portfolios. The continued expansion of small-footprint tenants suggests resilience in certain retail sectors despite economic headwinds, offering opportunities for developers and communities seeking stable commercial tenants.
Summary
Investment sales brokers are experiencing a significant surge in year-end transaction activity as buyers race to secure bonus depreciation benefits before 2025 concludes, driven by recent federal legislation that restored 100% bonus depreciation for specific commercial real estate categories. This tax-driven urgency, particularly for completed single-tenant net lease assets, is highlighted by Brittany Megrath, CCIM, principal of M Square Commercial, who notes that tax strategy rather than market timing is currently propelling deals. The restoration of this provision, which had declined to 40%, is especially impactful for automotive-related properties like car washes and quick-lube facilities, redirecting investor focus toward assets offering immediate tax advantages alongside operational returns.
Quick-Lube properties are emerging as particularly attractive opportunities within this market, characterized by Megrath as underappreciated assets that combine tax benefits with practical site characteristics and active corporate tenant expansion programs. These facilities require smaller footprints than traditional automotive uses, enabling development on constrained parcels while benefiting from the same 100% bonus depreciation treatment. Meanwhile, 2025 presented execution challenges across commercial real estate, requiring creativity in deal completion as developers increasingly turned to private lenders when institutional financing proved too restrictive or slow, with capital source choices significantly influencing project structure and exit strategy.
Looking toward 2026, M Square Commercial anticipates that continued interest rate declines will improve investment appetite for single-tenant net lease assets as alternative fixed-income returns become less competitive. Properties offering 6-7% returns may regain investor attention as Treasury yields and CD rates decline, improving commercial real estate's risk-adjusted attractiveness. Small-footprint tenants across coffee and quick-service categories are expected to maintain expansion programs through 2026 despite financing challenges, adjusting capital strategies rather than growth plans. M Square Commercial, which provides site selection and development advisory services, anticipates facilitating 30-40 transactions annually across Southeast and Mid-Atlantic markets, focusing on beverage, automotive, and quick-service retail categories.
Source Statement
This curated news summary relied on content disributed by Keycrew.co. Read the original source here, Year-End Real Estate Rush: Tax Benefits Drive Investment Sales Surge
