CRE EDGE | Year End Perspective & 2026 Positioning
Using Commercial Real Estate to Mitigate Taxes Legally, Strategically, Intentionally
As we close out the year and turn our attention to 2026, many investors are asking the same question:
How do I reduce my tax exposure without taking unnecessary risk or rushing into the wrong deal?
The answer, more often than not, isn’t found in complex financial engineering it’s found in buying the right commercial real estate at the right time, in the right structure.
Why 2026 Matters
We are entering a window where:
Interest rates are stabilizing
Cap rates remain attractive in select asset classes
Sellers are realistic but not distressed
And tax planning must be done before income is realized
Waiting until April to think about taxes is too late. The most effective tax mitigation strategies are set in motion 12–24 months in advance.
Commercial Real Estate as a Tax Strategy
When structured correctly, commercial real estate can provide:
Depreciation and cost segregation to offset earned and passive income
Interest deductions that shelter cash flow
1031 exchange pathways for deferring capital gains
Long-term appreciation without annual tax drag
Control, not volatility, compared to market based assets
This is not about avoiding taxes it’s about allocating capital into assets the tax code already favors.
The Mistake I See Too Often
Investors frequently make one of two mistakes:
1. Buying any property just to “get depreciation,” or
2. Waiting too long and being forced into a suboptimal deal
Tax driven investing without discipline leads to regret. Tax aware investing with patience leads to compounding.
What We’re Watching Going Into 2026
At CRE Edge, we’re focused on:
Industrial and flex assets with durable demand
Medical and service oriented retail that survives cycles
Value add opportunities where depreciation can be accelerated
Markets with population stability and job diversity, not hype
Every acquisition must pass two tests:
1. Does it stand on its own as a good investment?
2. Does it improve the investor’s overall tax and wealth position?
If it doesn’t do both we pass.
Planning Starts Now
If 2026 is a year where income, exits, or liquidity events are expected, the conversation should already be happening:
Entity structure
Timing of acquisition
Capital allocation
Exit horizon
Commercial real estate is not just about owning buildings it’s about owning outcomes.
If this perspective resonates, CRE Edge will continue breaking down how thoughtful real estate decisions create clarity, not complexity especially in uncertain tax environments.
Here’s to disciplined growth, intentional planning, and playing the long game.
—
Francesco “Frank” Tommaso
Founder & Principal Broker
Supreme Real Estate Group
Keep reading other bits of knowledge from our team.
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