2015 Year in Review - Jed Dallek

What was your most notable project, deal, transaction or professional achievement in 2015? By far, the most notable professional achievement our practice group had was the implementation of the new IRS Repair Regulations to our clients. Gettry Marcus invested hundreds of hours learning the new rules wherein we were able to have an in-depth and complete understanding of how to apply these new rules. We were called in on various consulting assignments for non-clients and wrote numerous articles that were published on this subject. Very briefly the new rules allowed taxpayers to write off real property acquisitions that were previously required to be capitalized both currently and prospectively. The result was our clients were able to deduct well over 100 million in depreciation, saving them in excess of 40% in federal and local taxes. What emerging trends will drive investment and development in 2016? Besides the obvious effect that raising interest rates will have on real estate, I see a growing trend with large retail “Big Box” stores beginning to downsize their total square feet. Retailers want to take advantage of the merger of internet/mobile shopping with the availability of smaller brick and mortar locations. Ever increasing Real Estate taxes, Common Area Maintenance costs, as well as, new laws to increase the minimum wage to $15/hour are pushing up rents charged to tenants. Tenants are looking to reduce their cost of “rent” while increasing their sales and maintaining their brand in the new Social Media/ Brick and Mortar Marketplace.