How Has 100% Bonus Depreciation Impacted Real Estate Prices and Strategy?

[John Becker]

Curious if anyone has come across research or data on how 100% bonus depreciation affects real estate prices. Intuitively, it seems like it would drive values up—especially for properties that qualify—but by how much?

Also, how do you think it’s influenced investor behavior? I’d imagine it encourages more buy-and-hold strategies, since investors might want to avoid depreciation recapture unless they’re using a 1031 exchange to trade up.

Would love to hear your thoughts. Has anyone looked back at the last time we had 100% bonus depreciation? The context was different then with much lower interest rates, but it might still give us clues.

Let’s discuss—what are you seeing in your market?