Policy & Progress: Session Overview

At this year’s C5 Summit in Chicago, one of the most anticipated conversations centered on a critical theme: how legislation is reshaping commercial real estate. The session, Policy & Progress, brought together top advocacy voices to cut through the noise in Washington and deliver clarity on what truly matters for real estate professionals. 

For CCIM members, the discussion was more than a policy update — it was a roadmap to understanding the forces shaping investment, development, and dealmaking in the months and years ahead. 

Housing Supply and the Conversion Opportunity 
The nation’s housing shortage dominated the conversation, and for good reason. After years of underbuilding, combined with post-pandemic inflation and stubbornly high interest rates, the supply gap has become a national crisis. On top of that, regulatory burdens at every level can add 25% or more to the cost of new housing before a shovel ever hits the ground. 

Federal policymakers are considering ways to ease these barriers. Among the most promising are incentives for office-to-residential conversions. As remote work continues to reshape demand for office space, conversions are gaining traction as a viable solution. Washington, D.C. has already piloted successful efforts, and broader federal support could open new opportunities for adaptive reuse across the country — an area where CCIM expertise is invaluable. 

Insurance Costs and Risk Management 
Another pressing issue is the surge in insurance premiums. In many markets, property owners now pay more for insurance and property taxes than they do in principal and interest. This reality is squeezing margins and complicating underwriting for new deals. 

Advocates are pushing for state-level reforms and even exploring legal avenues where local policies create untenable burdens. Looking ahead, the looming expiration of the Terrorism Risk Insurance Program in 2027 adds another layer of uncertainty. Extending this federal backstop is essential to keep lenders and investors confident in financing large-scale commercial projects. 

Protecting Tax Tools That Drive Real Estate 
The conversation also focused heavily on tax policy — and the wins that matter most for CCIMs and their clients. 

• 1031 Exchanges remain protected, despite repeated attempts in Washington to scale them back. 

• Section 199A Pass-Through Deduction continues to provide favorable treatment for brokers, investors, and partnerships. 

• Carried Interest Rules were preserved, protecting how real estate partnerships recognize risk and reward. 

Perhaps most importantly, advocacy groups successfully fended off what they call the “Ugly 11” — a slate of proposed tax hikes that could have totaled more than $2 trillion in new costs for real estate. By keeping these provisions out, the industry preserved certainty for investors and business owners planning long-term. 

Energy, Infrastructure, and Market Liquidity 
As the session made clear, energy is becoming a front-line issue for commercial real estate. The explosion of data centers, AI adoption, and electrification is placing unprecedented strain on the grid. Ensuring access to reliable, diversified power will be critical for future development and investment. 

At the same time, federal infrastructure funds have been approved, but ensuring those dollars reach projects on the ground remains a top priority. For CCIMs, this means keeping a close eye on markets where infrastructure bottlenecks could either delay or accelerate investment opportunities. 

Finally, access to capital remains a core concern. Liquidity challenges are already slowing projects, and any missteps by federal housing finance regulators could spill over into commercial lending. Vigilance is required to protect stable capital flows. 

What It Means for CCIM Members 
For CCIMs, the key takeaways from C5 are clear: 

• Core tax tools are safe — for now. 1031 exchanges, 199A, and carried interest provisions remain intact. 

• Conversions are gaining real momentum. Adaptive reuse is a growth opportunity, supported by emerging federal and local incentives. 

• Rising costs require sharper analysis. Insurance, energy, and regulatory burdens are reshaping deal structures and client strategies. 

• Capital access and stability are fragile. Watching Washington closely is essential to protect liquidity and financing pathways. 

The Bottom Line 
Legislation is not just background noise — it is actively shaping the future of commercial real estate. For CCIMs, staying ahead of these developments means being ready to guide clients with confidence, seize emerging opportunities, and navigate risks as they arise. 

The C5 session was a reminder that advocacy works, but vigilance is ongoing. And for CCIMs, this legislative landscape isn’t just policy — it’s the framework for the deals, investments, and communities we help build every day.