The Treasury Department

➤➤ Join the ADAPT: Opportunity Zones conference September 16-17 in Baltimore, MD The new national conference series is aimed at identifying Opportunity Zones across all property types and geographic regions. This first-of-its-kind event will educate, connect and celebrate the investors, developers and owners with the people behind the planning and decision-making, such as architects, consultants, academics and, most importantly, municipal officials.  Click here to register and view the agenda.

WASHINGTON, DC—The Treasury Department has released another round of proposed regulations clarifying how Opportunity Zone investments and developments will work. Like earlier rounds, these new rules appear to be generally favorable to the commercial real estate industry.

At 169 pages, Treasury covered a lot of ground in this release. One important topic that was addressed was the question of what activities would meet the act of conduct requirement of a business, Jonathan W. Giokas, a partner with Husch Blackwell, tells “One key test for Opportunity Zone investments is that an investor has to be engaged in an active conduct of business,” he says. “In this new set of proposed rules it was determined that leasing can meet the act of conduct requirement for a business.”

Another important measure, Giokas continues, is that the IRS provided safe harbors that help determine how a business can meet the gross income requirement in the Opportunity Zone program. “Those are based on the provision of services and the employment of workers.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Erika Morphy

Erika Morphy has been writing about commercial real estate at for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

More from this author


GlobeSt. Multifamily Fall 2023Event

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.