In December, Congress passed the most comprehensive change in the tax code since 1986. While we do not yet know for sure how those changes will affect commercial real estate, the general consensus here at Rising is that the overall impact will be positive. We may see corporations utilize the extra cash from their tax cuts for built-to-suit developments or new headquarters, or grow their employee base and expand their leased space. This means there could be slightly more demand from the tenant side in both the capital and leasing markets.
Last fall, CBS put its Television City compound in West Los Angeles on the market, saying that it was worth a lot of money that could be “used better elsewhere.” Other film and TV companies that own vast studio lots in the same area, such as 21st Century Fox, Viacom and Sony, should follow suit.