Currently Commercial

Opportunity Zones are no longer a niche topic. Amidst a tighter lending environment, rising interest rates, and increased reliance on tax-advantaged strategies, they have become practical tools that commercial real estate professionals need to understand. That was the focus of our October Currently Commercial session, “Unlocking Opportunity Zones: Strategies to Maximize Your Next Deal,” featuring Leslie Biskner, CCIM, and Opportunity Zone attorney Mike Sikora.  

Sikora opened with a clear definition: Opportunity Zones are U.S. Treasury-designated geographic areas where qualifying investments may receive major federal tax benefits. For brokers, developers, investors, and lenders, the value is straightforward. Used correctly, Opportunity Zones can strengthen a capital stack and improve deal feasibility, turning a good deal into a better one. Sikora emphasized that while they will not rescue a weak project, they can meaningfully enhance deals that already make sense financially.  

The session also highlighted how Opportunity Zones are shaping market behavior on the ground. Sikora pointed to neighborhoods that gained momentum because the program helped sponsors raise capital faster and at a greater scale than traditional financing would allow. With construction costs still elevated, lending standards tighter, and equity harder to source, incentive programs like Opportunity Zones have become increasingly essential. Sikora noted that deals that once required one or two incentives may now need three to six to move forward. He stressed that Opportunity Zones are often a “built-in” incentive, and when paired with state-level counterparts, they can add immediate strength to a project’s structure.  

A particularly timely update was the federal future of the program. Sikora explained that new federal legislation has made Opportunity Zones permanent, creating both near-term deadlines and long-term opportunities. Current zones remain designated through Dec. 31, 2028, but investors must place capital gains into qualified opportunity funds by Dec. 31, 2026, to preserve eligibility. Beginning Jan. 1, 2027, newly designated zones will launch a new 10-year cycle with rolling benefits including a five-year deferral on capital gains taxes, at least a 10 percent basis step-up, and full exclusion on appreciation if investments are held for 10 years or more.  

For CCIMs, Sikora’s advice was simple and actionable. First, always confirm whether a property is in an Opportunity Zone early in the deal process. Second, if a site is eligible but not designated, work with local leaders to advocate for inclusion in future zone maps. And third, bring experienced Opportunity Zone counsel into the deal team early to avoid legal blind spots and closing delays.  

The session reinforced a core point for today’s market: understanding incentives is part of doing smart business. Opportunity Zones remain one of the strongest tools available to help qualified projects advance, and CCIM education continues to keep professionals prepared to use them strategically.