Tenant Occupancy

Historically, a majority of EB-5 Regional Center investment opportunities involved real estate development, and until 2012 many relied on counting tenant jobs among the employment impacts of the investment projects. In 2012, USCIS began issuing notices raising concerns about so-called “tenant occupancy methodology,” the practice of crediting direct tenant jobs to EB-5 investment in construction and leasing/management activities. From 2013 to 2017, USCIS declined to go on record as saying that it has changed policy and will simply no longer accept the practice of using direct employees of tenants as inputs to the economic model. Rather USCIS’s line was that the issue is “case-specific” and “the applicant might present additional evidence to demonstrate an economically acceptable nexus between the EB-5 investment and responsibility for job creation.”  In May 2018, USCIS decided to firmly state that that tenant jobs cannot reflect an acceptable nexus between EB-5 investment and job creation. Here are relevant links.

7 Responses to Tenant Occupancy

  1. Pingback: Call with USCIS Economists: Transcript and Thoughts « EB-5 Updates

  2. robert says:

    Too much concern on tenant occupancy by all involved. This is a jobs program not an investment program. Excess capacity in all aspects of real estate crowding out investment into real job producing baseline industries. It should be clear that projects of the past mainly shifted jobs and created short term impacts and thats why this is is front and center now as a hot topic.. American industry will start to benefit from this program when real estate developments are chilled because they cant meet the job requirements and thus allowing base line industries to fairly compete for capital.Then potential investors can accept the ” true ” at risk threshold requirement or in the alternative wait along time to go to Canada or Australia – not to mention there escalating capital requirements.These new requirements are a step in the right direction for this program going forward .

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  4. Pingback: EB-5 Economic Methodology on Real Estate Projects | EB5 for Developers

  5. Pingback: Tenant-Occupancy Request for Evidence « EB-5 Updates

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  7. Pingback: Tenant Occupancy Saga Continues (NOID Chapter) | EB-5 Updates

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