By Patricia Kirk | National Real Estate Investor
Opportunity Zone investments are a hot topic in the commercial real estate industry right now, but which office markets may be the best targets for this type of strategy?
The establishment of Opportunity Zones offers investors a way to defer and reduce taxes on capital gains, while building equity in real estate assets and improving low-income, distressed neighborhoods.
Common traits of Opportunity Zones certified by the U.S. Treasury are: a poverty rate of more than 32 percent, median family income about 37 percent below the area or state median, and an unemployment rate nearly 1.6 times higher than the U.S. average.
“In order to determine a real estate project’s viability as an Opportunity Zone investment, investors must calculate whether the value-add to the project equals or exceeds the amount paid for the property, minus the cost attributable to land value.”