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July 7, 2025 by Peter Maclennan Leave a Comment

The 2025 Tax Bill: What Savvy Bay Area Real Estate Investors Need to Know Now

If you’ve been waiting for the right time to expand or adjust your real estate portfolio, this may be it. President Trump’s “One Big Beautiful Bill,” signed into law earlier this year, delivers significant tax relief—and for investors in high-tax states like California, the timing couldn’t be better.

Whether you own a multi-family unit in Walnut Creek, a commercial property in Pleasanton, or are eyeing your first mixed-use asset in Concord, this new legislation opens doors to greater after-tax returns, smarter repositioning, and long-term wealth preservation. But only if you know how to use it.

Let’s walk through what this means for you, the Bay Area investor.


What Is the “One Big Beautiful Bill”?

Formally known as House Bill 1 of the 119th Congress [^3], this sweeping piece of legislation is being called the biggest tax reform since 2017. The goal? Fuel private investment by lowering the tax burden on individuals, businesses, and especially real estate investors.

In many ways, this is a continuation—and an expansion—of the Tax Cuts and Jobs Act. But what’s different is how it plays out for people in states with high income and property taxes. In short, California investors finally catch a break.


Key Real Estate Wins You Should Know About

✅ SALT Cap Increased to $40,000

The most talked-about feature of the bill is the increase in the SALT deduction cap from $10,000 to $40,000 [^1]. For those with substantial income and property tax bills in California, this could reduce your federal taxable income by tens of thousands.

This matters if you own property in cities like Danville, Alamo, or Lafayette, where both income and property taxes stack up fast. It’s one of the first breaks in years for Californians who were effectively penalized for living and investing here.

✅ 1031 Exchanges Stay Fully Intact

The bill left Section 1031 like-kind exchanges untouched [^2], which is excellent news for commercial and residential investors looking to reposition or upgrade their holdings without paying immediate capital gains tax.

Example: Sell a $2.5M triplex in Pleasant Hill and roll it into a $3.5M mixed-use retail/residential asset in Livermore—tax deferred.

✅ QBI Deduction Remains for Pass-Through Entities

The 20% Qualified Business Income (QBI) deduction continues under the bill [^2], giving LLCs, partnerships, and sole proprietors the ability to reduce taxable income from rental operations or real estate businesses.

If you own a portfolio in your personal name or through an LLC, this deduction can deliver five-figure savings each year—without selling a thing.

✅ Mortgage Insurance & Interest Deductibility Secured

For investors using financing, mortgage interest and insurance premiums remain deductible [^2], keeping debt-financed residential investments attractive even in a tightening market.

This is a major benefit in high-cost areas like San Ramon or Dublin, where leverage often makes or breaks a deal’s cash flow.


How This Plays Out in the Real World

Let’s say you’re an investor in Walnut Creek evaluating a $1.5M 4-plex. Under the previous tax code, your income tax savings were limited by the $10,000 SALT cap—even though your local tax bill might be $25K+.

Now, with the cap raised to $40,000, you get to deduct the full amount, keeping significantly more of your net income.

Pair that with smart use of the QBI deduction and you could be realizing a true net savings of $15,000–$25,000 annually—before you even consider depreciation or appreciation.

For commercial buyers in Concord or Pleasanton, 1031 exchanges remain one of the most powerful tools to roll profits into bigger and better assets, while staying out of Uncle Sam’s pocket.


But It’s Not All Upside: A Few Risks to Watch

With every tax cut comes a tradeoff. This bill is projected to add over $2.8 trillion to the federal deficit [^1], which could put upward pressure on interest rates and inflation in the next 12–18 months.

What does that mean for you?
If you’re planning to refinance or acquire property with leverage, now may be your best window before financing costs rise.

Also, clean energy incentives have been rolled back, which affects investors pursuing LEED or energy-efficient upgrades. While this won’t impact the majority of passive investors, it’s something to factor in when evaluating high-performance buildings.


A Word on Stewardship and Timing

If you’re like many of my clients, you don’t just want to grow wealth—you want to manage it wisely. Stewardship means knowing the times and taking action when the winds shift in your favor.

This is one of those times.

I believe that sound investing isn’t about rushing into every opportunity—but it is about responding when the right opportunity lines up with favorable conditions. Today’s alignment of tax incentives, motivated sellers, and still-manageable interest rates gives discerning investors a rare chance to expand or optimize their real estate portfolio.


💼 Ready to Position Yourself Ahead of the Curve?

The smartest investors aren’t waiting for the dust to settle—they’re acting now while the tax code, inventory, and interest rates are still in their favor.

Whether you’re evaluating a 1031 exchange, exploring mixed-use opportunities, or simply want to know how the new tax landscape affects your next move, you don’t have to navigate it alone.

I work one-on-one with serious investors throughout the 680 corridor—guiding them through strategic, tax-smart real estate decisions that are built to last.

🗓️ Spots are limited due to ongoing client demand. If you’d like to review your options and explore next steps with a knowledgeable broker who handles both residential and commercial investments:

👉 Click here to schedule your private consultation now

Let’s build something wise and lasting—starting today.


Final Thoughts

President Trump’s 2025 tax reform bill brings real, tangible benefits to investors who are positioned to act. If you’re ready to grow your portfolio—or just want to make sure you’re not leaving money on the table—this is the moment to get clarity.

Let’s be wise stewards of the opportunities we’re given.…


Disclaimer
The information provided in this article is for educational purposes only and does not constitute legal or tax advice. Real estate investments carry risk, and tax laws are subject to change. You should consult with a qualified CPA or tax attorney before making any investment or tax planning decisions.


Sources
[^1]: San Francisco Chronicle – Tax Bill Impact in California
[^2]: National Association of Realtors – Key Wins for Real Estate
[^3]: Congress.gov – Text of House Bill 1

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Filed Under: Bay Area Real Estate News, Real Estate Investing

November 26, 2024 by Peter Maclennan Leave a Comment

Recent Real Estate Transactions Overview

Here’s a summary of some recent real estate transactions we have been working on.

For Lease: 3930 Pacheco Blvd, Martinez Office Space

3930 Pacheco for Lease

3930 Pacheco Blvd offers a charming single-story brick building along with an additional building currently configured as an open office. This property consists 5,260 sq. ft. in two buildings which could function as a small campus.


For Lease: 3380 Vincent Rd Ste 101, Pleasant Hill Warehouse

3380 Vincent Rd, Suite 101 is ±6,563 sq. ft. of light industrial warehouse and office space. With a dock high door for easy truck unloading, this space is ideal for distribution, assembly, and storage.

Front view of warehouse/flex space with a high dock door.

8,000 sq. ft. Antioch Warehouse for Lease

exterior photo of 511 Wilbur Ave Suite B4 Antioch CA a metal warehouse building

This Antioch warehouse space contains multiple power meters and three (3) roll up doors. The clear span warehouse allows for easy movement, storage, and assembly.


Tenant Representation: 2 Walnut Creek Office Spaces

Space 1 – 1,100 Sq. Ft. Office Lease

Our client was seeking office for their nascent home health care business. We toured multiple locations and identified the property in the Shadelands as the most ideal for their needs. We were able to negotiate successful lease terms and get them into their space.

Space 2 – 1,700 Sq. Ft. Office Lease

A past client contacted me regarding their expiring lease. They realized that they could function in a much smaller space. After touring multiple properties, we determined that a smaller space within their same project at Shadelands would be the best fit. We were able to negotiate an acceptable rent and tenant improvement package to get them into their new space.


For Sale: 24,000 sq. ft. Warehouse Building in Concord, CA

The building at 5135 Port Chicago Hwy in Concord is a great leased investment for the discerning buyer. The tenant mix is varied and includes substantial rental increases for many of the tenants.

Download Flyer
5135 Port Chicago Hwy, Concord exterior

Contact Peter Maclennan today to discuss how he can assist with your real estate needs.

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Filed Under: Commercial Leasing, Concord Real Estate, Contra Costa Real Estate, Industrial Real Estate, Investment Property, Listing, Martinez Real Estate, Tenant Representation Tagged With: Commercial Real Estate, Contra Costa County, Industrial Real Estate, Investment Property, Office, Real Estate Investment

October 19, 2023 by Peter Maclennan Leave a Comment

LEASED: Light Industrial in Bay Point, CA

We have a new listing for lease in Bay Point, CA. The light industrial warehouse is comprised of 4,800 sq. ft. on just over 20,000 sq. ft. lot. The lot is fenced and paved with excellent storage.

Details of the listing can be found here: 4300A Evora Rd, Bay Point, CA.

Light Industrial Property at 4300A Evora Rd has been leased.

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Filed Under: Real Estate Investing

July 2, 2023 by Margaret Leave a Comment

Happy Independence Day!

Wishing all a Safe and Happy 4th of July! May your Independence Day be filled with laughter, people you love, good food, and thankfulness that you live in an incredibly free country.

NOTE: Our office will be open on Jul 3 and closed on Jul 4.

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Filed Under: Real Estate Investing

December 21, 2022 by Peter Maclennan Leave a Comment

Wishing You a Blessed Christmas & 2023!

Tis’ the season to reflect on the year and count our blessings! Though 2022 was wrought with uncertainties, I am truly grateful for the opportunities to work with you and serve you in your real estate needs.

Thank you so much for your support! May you and your loved ones have a Blessed Christmas and New Year. I look forward to serving you in 2023!

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Filed Under: Seasons Greetings

September 23, 2022 by Peter Maclennan Leave a Comment

For Lease! Antioch Industrial Building

This property has undergone some recent upgrades including new paint in the office area, LED lighting throughout the building, and new flooring in the office.

Call me at (925) 385-8798 to discuss or to schedule a tour.

Sincerely,
Peter Maclennan
Property Overview
±8,070 sf of Light Industrial space for lease
±7,000 sf of Warehouse with a private restroom
±1,000 sf of Office with Mezzanine Space
5 Drive In Doors provide multiple entry points
Almost 1 full acre of fenced & paved yard
Zoned Light Industrial – City of Antioch
Skylights provide abundant natural light
Yard Space
The building sits on a 41,774 sq. ft. lot. The lot is fenced and paved for the next tenant with access on all sides of the building.
Download Flyer
maps of 725 Location

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exterior photo of 511 Wilbur Ave Suite B4 Antioch CA a metal warehouse building$9,200/mo8,000 sf Warehouse in Antioch511 WilburAveAntioch, CA 94509View Listing
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Welcome to Maclennan Investment Group, Inc., your East Bay Area real estate investment advisors. Maclennan Investment Group assists buyers and sellers of real estate maximize the investment potential of their real estate assets.

Learn More about us.
Offering real estate services in the communities of: Walnut Creek, Concord, Pleasant Hill, Martinez, Alamo, Lafayette, and surrounding cities.

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Disclaimer: Information deemed reliable but not guaranteed. This site is not meant to offer legal or tax advice.

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925.385.8798

Maclennan Investment Group, Inc.
3380 Vincent Rd, Ste HUB
Pleasant Hill, CA 94523
p. (925) 385-8798
Licensed Broker in the State of California, DRE#01871809
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