Executives Confident in Boost from Stimulus

(Crystal Proenza is associate editor of Real Estate Florida.)

Positive news is on its way, so start looking out for brighter headlines, according to commercial real estate experts. The $787- billion American Recovery and Reinvestment Act, signed by President Obama on Feb. 17, is expected to lift the industry by adding jobs and mitigating overall market perceptions. Florida is set to receive $12 billion through the economic recovery bill, enough to create 207,000 new positions throughout the state.

“Commercial real estate activity is very connected to general economic conditions and the most important impact this could have is creating jobs,” says Larry Richey, senior managing director at Cushman & Wakefield’s Tampa office. “If we’re adding jobs on a net basis, as opposed to losing them, it has an immediate impact on the office market, as well as on industrial, retail and other property types.” More bodies working require more physical space, which could put a stop to rising vacancies and sinking rents.