The outlook for the commercial real estate industry remains strong despite growing concerns over sluggish job creation and higher taxes, according to a new survey of commercial real estate professionals who attended a leadership conference hosted by NAIOP, the Commercial Real Estate Development Association.
The poll was conducted during NAIOP’s 2015 Chapter Leadership and Legislative Retreat and surveyed over 100 commercial real estate insiders.
Nearly half of respondents indicated that sluggish job growth was a major concern and nine out of 10 indicated that higher capital gains taxes would have some impact on investment and growth, with many saying the impacts could be “severe.”
President Obama’s FY 2016 budget proposal includes a proposal to raise the top tax rate to 28% on capital gains and qualifying dividends for couples with income over $500,000.
Despite concerns over sluggish job creation and higher taxes, 52% projected strong growth in 2015, while 43% saw the industry as remaining stable.
“Our members are optimistic, but sluggish job creation and the looming threat of higher taxes are their main worries right now. Given our industry’s contribution to a durable economic recovery and generating good-paying jobs, we hope Congress and the president will hear this and weigh the serious consequences of a tax hike at this time,” said Thomas J. Bisacquino, president and CEO of NAIOP.
When asked the question “what keeps you up at night?” 27% of respondents indicated that gridlock in Washington was a major concern. “We need strong and consistent policies from Washington that encourage investments in development projects so more Americans can share in our economic recovery,” said Bisacquino.
Related Stories
Mixed-Use | Apr 22, 2022
San Francisco replaces a waterfront parking lot with a new neighborhood
A parking lot on San Francisco’s waterfront is transforming into Mission Rock—a new neighborhood featuring rental units, offices, parks, open spaces, retail, and parking.
Market Data | Apr 14, 2022
FMI 2022 construction spending forecast: 7% growth despite economic turmoil
Growth will be offset by inflation, supply chain snarls, a shortage of workers, project delays, and economic turmoil caused by international events such as the Russia-Ukraine war.
AEC Tech | Apr 13, 2022
A robot automates elevator installation
Schindler—which manufactures and installs elevators, escalators, and moving walkways—has created a robot called R.I.S.E. (robotic installation system for elevators) to help install lifts in high-rise buildings.
Office Buildings | Apr 11, 2022
SOM-designed office tower aims to promote health and wellness
Skidmore, Owings & Merrill (SOM) recently completed work on 800 Fulton Market, a new mixed-use office building in Chicago’s historic Fulton Market/West Loop neighborhood.
Projects | Apr 6, 2022
Ryan Companies expands Chicago presence with new West Loop office
Ryan Companies US, Inc. (Ryan), a national leader in commercial real estate services, announces it has enhanced its Chicago presence with the opening of a new downtown office at 224 North Desplaines in the city’s West Loop neighborhood.
Airports | Apr 4, 2022
Dominican Republic airport expansion will add mixed-use features
The recently revealed design concept for the expansion of Santiago International Airport in the Dominican Republic includes a transformation of the current building into a mixed-use space that features an office park, business center, and hotel.
Codes and Standards | Mar 23, 2022
High office vacancies have cities rethinking downtown zoning
As record-high office vacancies persist in U.S. urban areas, cities are rethinking zoning policy.
Projects | Mar 22, 2022
Fast-growing Austin adds a $3 billion community
The nation’s fastest-growing large metro area is getting even bigger, with the addition of a $3 billion, 66-acre community.
Projects | Mar 18, 2022
Former department store transformed into 1 million sf mixed-use complex
Sibley Square, a giant mixed-use complex project that transformed a nearly derelict former department store was recently completed in Rochester, N.Y.
Projects | Mar 17, 2022
Plans unveiled for ‘Wall Street South’ mixed-use office block in West Palm Beach
Brand Atlantic Real Estate Partners, Wheelock Street Capital, and B+H Architects released design plans for a new mixed-use office block in West Palm Beach called Banyan & Olive.
