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The Treasury Department

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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 GlobeSt.com. “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.”

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com 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.

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