FTC Seeks Public Comments On Potential Major Changes For HSR Reportability Of Real Estate Transactions

Many, if not most, transactions involving real estate are exempt under the Hart‑Scott‑Rodino Antitrust Improvements Act (the HSR Act). In fact, in light of the fragmented nature of most real estate markets, antitrust concerns are not common for real estate businesses. However, the Federal Trade Commission (FTC) and Department of Justice (DOJ, and together with the FTC, the Agencies) are soliciting public comments on potential amendments to the HSR rules, including whether to remove certain real estate exemptions altogether. Additionally, Senator Elizabeth Warren has introduced legislation that would significantly narrow or eliminate key real estate and REIT‑related exemptions. This alert covers these potential changes and the significant burden they would have on real estate transactions moving forward, including the potential for many more transactions requiring HSR filings.