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 | Feb 15, 2019
A healthier perspective: Office developers bet on wellness amenities to attract top-notch tenants
Owners and developers are driving demand for wellness features and practices—active stairways, biophilia, enhanced air quality, etc.—as one more way draw tenants.
Office Buildings | Feb 15, 2019
Vancouver’s new office building will be a stack of reflective boxes
OSO and Merrick Architecture designed the building.
Office Buildings | Feb 11, 2019
Real-world wellness pays off
3form, a materials manufacturer, did a top-to-bottom remodel of its Salt Lake City headquarters campus that included adding a 14,500-sf gym.
Office Buildings | Feb 5, 2019
Duluth Trading Company moves to new HQ building
Plunkett Raysich Architects designed the project.
Interior Architecture | Jan 14, 2019
To get more involved earlier in projects, a leading furniture dealer launches a firm for commercial interiors construction
Vantis is positioned to integrate design with offsite customized fabrication.
Office Buildings | Jan 11, 2019
Open offices are bad!
The Harvard studies on the unintended effects of open office defines it as space where 'one entire floor was open, transparent and boundaryless… [with] assigned seats,' and the other had 'similarly assigned seats in an open office design, with large rooms of desks and monitors and no dividers between people's desks.'
Office Buildings | Dec 18, 2018
Google announces new $1B Hudson Square campus project
The 1.7 million-sf campus will expand the company’s New York City presence.
Office Buildings | Dec 13, 2018
Apple selects Austin for $1 billion campus
The company will also build smaller expansions in six other U.S. cities over the next three years.
Office Buildings | Dec 4, 2018
Brookfield launches contest for startups to receive two years of free office space
This is part of a larger campaign to burnish the image of L.A.’s Wells Fargo Center.
Office Buildings | Nov 28, 2018
Amazon HQ2 and the new geography of work
The big HQ2 takeaway is how geography and mobility are becoming major workplace drivers.