How the “Big Beautiful Bill” Reshapes Ohio’s Industrial Real Estate Landscape

Congress just passed the “One Big Beautiful Bill Act” (H.R1). While headlines focus on sweeping tax reforms and economic stimulus, industrial landlords—especially in manufacturing-heavy states like Ohio—should be paying close attention.

Why? Because tucked into the fine print are provisions that could significantly boost returns, ignite tenant demand, and reshape how we underwrite industrial assets for the next decade.

💡 Bottom Line Up Front

The One Big Beautiful Bill Act delivers powerful tax advantages for industrial properties, especially those tied to manufacturing and production. If you own or lease industrial space in Ohio, this bill could increase your property’s value overnight.

✨ Game-Changing Tax Incentives

1. 100% Bonus Depreciation Returns—Permanently
   Landlords can now fully expense qualifying improvements and equipment in the year placed in service starting January 20, 2025. This benefit from the 2017 Tax Cuts and Jobs Act (TCJA) is now permanent with no phase-out. 
2. New “Qualified Production Property” Category
   This is a major win for Ohio. If you build or renovate nonresidential real estate for manufacturing, production, or refining:

• • You qualify for 100% bonus depreciation.
  • Projects must break ground between Jan 20, 2025, and Dec 31, 2028, and be in service by the end of 2032.
  • Hold the asset for 10 years and avoid depreciation recapture.

Speculative manufacturing build-to-suit? Back on the table.

💼 Income Deductions Get a Boost

3. Bigger Slice for Pass-Through Owners
   If you own industrial assets through an LLC or partnership, the Section 199A Qualified Business Income (QBI) deduction increases:

• • From 20% to 23%
  • Permanently (previously set to sunset in 2025)

4. Section 179 Expensing Expanded
   You can now expense up to $2.5 million in improvements immediately (phaseout begins at $4 million). This supports everything from tenant buildouts to major capital upgrades.

📈 Demand Drivers You Can’t Ignore

5. Manufacturing Investment Tailwinds
   With instant expensing, large-scale facilities near Ohio’s infrastructure corridors (I-70/I-71, Rickenbacker, Intel’s Licking County corridor) now pencil out faster. Expect increased demand from reshoring manufacturers.
6. Opportunity Zones Extended
   Tax benefits for Opportunity Zones are extended through 2033. Developers targeting underinvested corridors in Central and Northeast Ohio may find this the perfect window for land banking and speculative development.

⚠️ What to Watch

7. Green Incentives Didn’t Make the Cut
   The expanded Section 179D deduction for energy-efficient retrofits was left out. Landlords upgrading legacy assets (insulation, LED, HVAC) won’t see the same tax benefits—at least not from this bill.
8. Long-Term Rate Pressure
   With $2.5 trillion added to the federal deficit, inflationary pressure could push long-term interest rates higher. That’s something to watch for refinancing and debt-funded development strategies.

🏭 Why It Matters for Ohio

Ohio’s industrial market has remained resilient despite rising rates and limited new construction. The One Big Beautiful Bill Act could be the catalyst for:

• New tenant demand from reshoring manufacturers 
• Renewed developer interest in build-to-suit 
• Stronger rent growth for functionally aligned facilities 

In short, this bill rewards landlords who can deliver manufacturing-ready, production-efficient, and tax-incentive-qualified space.

Final Thought

In a market where costs are rising and space is scarce, the One Big Beautiful Bill Act gives Ohio industrial landlords a real edge—if they act early. Whether repositioning existing assets, planning ground-up development, or rethinking long-term hold strategies, now is the time to evaluate your portfolio through this new tax lens.

Let’s talk if you’re exploring how to align your assets or leasing strategy to take advantage.

*This communication is for informational purposes only and does not constitute tax advice. We are not tax advisors and recommend that you consult with a qualified tax professional before making any financial or tax-related decisions. If you do not currently have a tax advisor, we would be happy to provide recommendations.