Last week's GlobeSt.com Quick Poll asked readers if Barack Obama's economic recovery plan will help CRE. Responses were nearly split down the middle, with 47% voting yes and 53% no. Gil Medina, executive managing director at Cushman & Wakefield of New Jersey, talks to GlobeSt.com about what the President-elect's stimulus package means for commercial real estate.

There are several components to Barack Obama's stimulus package. The principal ones being:

1.) Investment in infrastructure projects through the states--most likely requiring state matching funds;

2.) Investments in alternative energy and IT infrastructure;

3.) Investment tax credits for firms making capital investments;

4.) Aid to states to help underwrite health and education costs; and

5.) Tax rebates.

The first three components will not only have the most direct and short-term impact on the economy, but also on commercial and industrial real estate. Because the performance of commercial/industrial real estate is so inextricably bound with overall economic performance, all of these components have the potential to be beneficial.

But tax rebates to individuals have not yet succeeded in prodding an increase in consumer spending--the largest component of GDP.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Feature