September 24, 2025 | BOMA International, Ella Krygiel
Now a few months into the One Big Beautiful Bill Act (OB3) becoming tax law, it’s time to take a moment and assess how this impacts the commercial real estate industry. During a recent virtual press briefing last week by Saul Ewing LLP, a full-service national law firm with more than 450 attorneys and a team of top-notch business professionals, they discussed how the new tax law will affect various industries in 2026. The briefing featured expert attorneys to analyze what these changes mean for business planning and compliance. Among these topics, panelist Lisa Colon, Saul Ewing Partner in South Florida, Construction Law discussed how this law is shaping the construction industry. Below, we’ll explore Lisa’s key observations and learn more about how we can stay prepared for the year ahead.
Current Market Conditions
The OB3 allocates approximately $350 billion for border and national security, Kiplinger reports, including $46 billion for the border wall and $45 billion for expanded migrant detention. Additionally, it funds the hiring of 10,000 new ICE officers and aims to deport up to 1 million people per year. The administration’s focused deportation efforts are on “dangerous criminals,” however, most people detained by ICE have no criminal convictions, AP News reports. With this enforcement focus, “The construction industry has always relied on immigration labor,” Colon says. “The labor shortage in construction is only getting worse.” According to AP News, 30% of all construction workers are immigrants, and as of early September, 1.2 million immigrants are gone from the U.S. labor force. “So, what does this mean?” Colon asked during the press briefing. “Construction workers aren’t showing up. No one wants to be detained.” As a result, these workforce disruptions are leading to project delays. According to a recent survey, 78% of contractors reported at least one project delayed in the past 12 months, with 45% attributing delays to workforce shortages at both the prime and subcontractor levels (Construction Owners). “Adding to this,” Colon emphasizes, “once a schedule is disrupted at a job site, there is a newfound pressure on costs.”
Compliance Requirements
Given the threat of ICE enforcement, superintendents, the on-site construction leaders, have an integral responsibility for managing these situations effectively. According to Safe Site, common triggers for ICE jobsite visits include: anonymous tips or reports, patterns in I-9 audits, subcontractor violations or past enforcement history. While these visits can be unsettling, there are certain rights and responsibilities you should be aware of, such as:
- ICE agents generally need a warrant to enter non-public areas of a worksite.
- Employees have the right to remain silent and not answer questions from ICE agents.
- Employers have the right to protect their business interests and ensure compliance with the law.
Additionally, Colon offered some tips during the press briefing such as utilizing an E-Verify system to identify if an individual has a valid work visa, and to “make sure I-9s are correct and that your employees are legally able to work.” According to Larsen Immigration, there are proactive measures employers can take such as training staff on how to respond to ICE visits, establishing a jobsite response plan and preparing a designated legal contact list and protocol for ICE interactions, to name a few. Through these actions, construction employers can navigate these challenges as they protect their workers and businesses.
Business Preparedness
At a broader level, ICE visits have compromised the psychological safety and well-being of targeted workers and legal citizens who are employees. This leaves employers responsible for managing these situations with clear communication and cultural sensitivity. As Colon described, “Make sure you have a response ready and a plan for your workers if ICE were to show up. For example, have the Director of Human Resources available if a call is needed.” Just as important, as we’ve discussed, is ensuring that the worker feels that the leadership is taking into account differences in communication. For example, in a Forbes article, they mentioned how helpful it can be for leaders to prepare communication templates and response procedures in multiple languages, which will ultimately help protect their employees’ rights. Joycelyn David, a multicultural leadership and marketing expert adds that if your workforce is 40% Spanish speaking, to have someone who can deliver updates in Spanish with the same tone and urgency as the English version, emphasizing that Spanish-speaking employees deserve to hear confidence and empathy in their own language. Colon adds, “If ICE shows up at your job site, be prepared to have your lawyer present. That is as much as you can do.”
Looking ahead, while construction faces significant enforcement risks, preventive measures can help mitigate these challenges. According to Taft Law, the standards below should be kept in mind:
- Implement strong I-9 compliance practices: HR personnel must be trained on proper I-9 form completion and storage while ensuring non-discriminatory hiring practices.
- Develop a worksite enforcement response plan: A clear chain of communication must be established, including legal counsel and senior management, and employees should be informed of their rights and obligations.
- Work with legal counsel for compliance reviews: Employers should proactively engage with attorneys to review employment practices and ensure compliance with immigration laws.
Colon shares her perspective on these rapidly developing regulations: “Immigration laws are complex and outdated. They need to be enforced, but there needs to be a change in the visa policy — such as who gets it, who gets to stay and so forth.”
BOMA actively evaluates current events and provides supplemental information in the event it is helpful or necessary. To learn more on this subject, visit our policy brief, Guidance Concerning Internations with Law Enforcement on Property.
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