Elections Force Industry to Size Up Agenda

WASHINGTON, DC-With Democrats now controlling the House, and possibly the Senate, a change is in the air for commercial real estate. Industry leaders are taking stock of upcoming changes and new legislative initiatives expected to be introduced and possibly passed in the months to come.

“Regardless of which party you supported this week, the fact is that Congress is going to be divided pretty evenly, and the American people want Congress to work together,” Leo Wells, president of Wells Real Estate Funds, tells GlobeSt.com. “Both parties understand that commercial real estate is one of the building blocks of a strong economy, and it’s in the interest of both parties to keep the economy on a strong trajectory.”

Jeffrey DeBoer, president and CEO, of the Real Estate Roundtable, outlined what he saw as the real estate issues legislators will face this term. Topping the list was terrorism insurance, and Homeland SecurityOne is terrorism insurance–an issue some see as only partly resolved with the latest extension of TRIA (the Terrorism Risk Insurance Act.) DeBoer reports that new House Financial Services Committee chairman Barney Frank (D-MA), working with Republicans on the committee, is expected to hold hearings early in 2007 regarding the terrorism insurance issue. At present, he says, “we expect the House Financial Services Committee, and possibly the full House, to approve bi-partisan legislation to continue TRIA in some fashion by mid-year 2007.” Action is expected to be much more deliberative in the Senate Banking Committee where, depending on the final vote count in Virginia, either Senator Richard Shelby (R-AL) or Senator Chris Dodd (D-CT) will be chairman.