Yardi Matrix White Paper Updates Opportunity Zone Activity

Share

Yardi Matrix White Paper Updates Opportunity Zone Activity

Tax deferrals incentivize investment in low-income areas

SANTA BARBARA, Calif., March 20, 2019 โ€“ A new white paper from Yardiยฎ Matrix offers insight into the impact of a U.S. real estate investment tax incentive.

Tax reform passed in December 2017 designated more than 8,700 low-income โ€œopportunity zonesโ€ where capital gains taxes may be lowered or eliminated depending on how long an investment is held. Opportunity zones encompass about 10% of the U.S. population and 12% of the countryโ€™s land.

The white paper notes that opportunity zones have attracted intense interest from real estate investors because they โ€œdraw from a new base of largely untapped investorsโ€ and offer value-add opportunities in โ€œnew markets that were thought to be too small or risky as investment strategies.โ€

About 1.9 million multifamily units, 960 million square feet of office space and 180 million square feet of self storage space are either in place or under construction in opportunity zones.

Among the other opportunity zone faces reported in the white paper:

  • The development pipelineโ€”projects approved but not begunโ€”includes 450,000 multifamily units, 120 million square feet of office space and 12 million square feet of self storage space.
  • Washington, D.C., Phoenix and Brooklyn, N.Y., have the most multifamily units in place and under construction.
  • Houston, Detroit and Portland, Ore., are the leaders in office square feet in place and under construction.
  • Metros with the most self storage space in place and under construction are Richmond, Va., Phoenix and Californiaโ€™s Inland Empire.

Learn more about this still-developing investment vehicle in the white paper, titled โ€œThe Big Opportunity for Investors in Opportunity Zones.โ€

Yardiย Matrix offers the industryโ€™s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardiยฎ develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.