Tax Incentives and Opportunity Zones for Fayetteville Commercial Sellers

Fayetteville’s commercial real estate market runs on one engine: Fort Liberty. It’s the largest military installation in the world by population, and everything about Cumberland County’s economy connects back to it. That includes Opportunity Zones. Fayetteville’s OZ tracts sit in areas that serve the base, the military workforce, and the contractors who support them. And the tax incentives layered on top of OZ make this a market where sellers have more pricing power than they might realize.

Where the OZ tracts are

Cumberland County’s OZ tracts cluster in three main areas. The corridors near Fort Liberty — along Bragg Boulevard and Yadkin Road — have tracts that serve the military community directly. The Murchison Road corridor running south from downtown has multiple OZ designations in areas that have been targeted for redevelopment. And downtown Fayetteville itself has OZ tracts in the core that’s been seeing investment in recent years.

The Fort Liberty-adjacent tracts are commercially interesting because they have built-in demand. Military personnel, contractors, and support staff need services, storage, food, and retail. That population isn’t going anywhere — Fort Liberty is home to the XVIII Airborne Corps and the 82nd Airborne Division. The base population provides a stable demand floor that most markets don’t have.

If you own industrial or self-storage property in these zones, the combination of military demand and OZ buyer interest creates a strong selling environment.

Federal OZ program

Here’s the thing about OZ investing near a military installation. The demand fundamentals are incredibly stable. Fort Liberty isn’t closing — it’s expanding. The Army just completed a $500 million modernization program at the base. An OZ investor buying commercial property near Fort Liberty can reasonably project stable or growing demand for the full 10-year hold period. That makes the 10-year tax-free exclusion on appreciation very attractive.

OZ 2.0 and Fayetteville

Under the proposed OZ 2.0 framework, governors nominate new tracts by approximately October 2026, with new zones effective January 1, 2027. Fayetteville’s OZ tracts have a reasonable case for redesignation. Many of these areas still need investment, and the presence of the military base means the economic rationale for directing capital here is strong.

But redesignation isn’t guaranteed. If your property is in a current OZ tract, selling while the designation is active removes the uncertainty. Our coverage of Fayetteville’s economy and Fort Liberty explains why the demand side of this market stays strong regardless of OZ status.

Military-related programs

Fayetteville benefits from several military-related economic programs beyond OZ. The Department of Defense invests heavily in base infrastructure, and that spending ripples through the local economy. Defense contractors need office and industrial space near the base. Military personnel transitioning to civilian life often stay in the area and start businesses.

The state has also designated areas near military installations for additional economic development support. These programs complement OZ incentives by bringing additional grant funding and technical assistance to the Fayetteville area.

North Carolina’s tax advantage

North Carolina’s corporate income tax is 2.25% in 2025 and dropping to zero by 2030. The individual income tax is 4.25%, heading to 3.99% in 2026. For commercial property owners selling through pass-through entities, that declining rate directly impacts the net proceeds from a sale.

JDIG — the Job Development Investment Grant — provides performance-based grants up to 80% of state withholdings for up to 12 years. Fayetteville has used JDIG to attract employers beyond the military sector, diversifying the local economy and creating additional demand for commercial space.

1031 exchanges

Honestly, most commercial sellers in Fayetteville use 1031 exchanges. It’s straightforward. Sell your property, identify a replacement within 45 days, close within 180 days, defer 100% of capital gains. No dollar limit. The 1031 exchange has been the standard tax deferral strategy for commercial real estate for decades, and it works.

For sellers in OZ tracts, you’ve got the added benefit of attracting OZ-motivated buyers on top of the traditional 1031 buyer pool. More buyers competing for your property means better pricing.

The Fayetteville opportunity

Fort Liberty isn’t going anywhere. Military spending in the area is stable to growing. OZ tracts near the base and along the Murchison Road corridor have motivated buyers looking to deploy capital. And North Carolina’s declining tax rates make the state more attractive for investment every year. If you own commercial property in these corridors, the demand picture is as clear as it’s going to get.

If you’re considering selling commercial property in Fayetteville, I’d like to hear about it. Call me at 704-600-3839 or visit rothcapital.com.