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
Office Buildings | Jan 14, 2020
The workplace should be a tool for improving employee engagement
A survey of 1,600 North American workers hints at what workplace elements have the greatest impact.
Office Buildings | Jan 9, 2020
NFL’s Packers and Microsoft add an innovation center to a fledgling business district
The goal is to nurture startups aligned with local industries.
Office Buildings | Jan 9, 2020
Foster + Partners to design Alibaba’s new offices in Shanghai
The firm won a design competition for the project.
Sponsored | HVAC | Jan 6, 2020
Four Ways Building Systems Create Long-term Profitability
When accounting for the total cost of ownership and the potential return on investment, owners and developers should consider total energy usage, the lifespan of building systems equipment, the recruitment and retention of occupants, and lease rates.
Office Buildings | Oct 28, 2019
LEGO opens the first phase of its new Billund, Denmark campus
C.F. Møller Architects designed the project.
Office Buildings | Oct 23, 2019
Ferrara Candy Company gets new HQ space in Chicago’s Old Post Office building
NELSON Worldwide designed the project.
Office Buildings | Oct 23, 2019
London’s new ‘Can of Ham’ office building completes construction
Foggo Associates designed the building.
Office Buildings | Oct 21, 2019
IH Mississippi Valley Credit Union headquarters completes construction
LEO A Daly designed the building.
Office Buildings | Oct 17, 2019
New social campus for innovators, tech leaders covers a full city block
Hollwich Kushner, with Gensler as design development architects, designed the building.
Office Buildings | Oct 15, 2019
New 80,000-sf coworking space completes in Chicago
It is the third ‘Spaces’ location in Chicago.
