Sequestration budget cuts loom over commercial real estate and condo market sets a milestone
Mar 1, 2013
Sequestration and budget cuts could impede commercial real estate projects, and Miami’s condominium market takes a big step toward recovery. Here’s the news you may have missed this week:
World Property Channel: “Looming Sequestration Expected to be a Villain to Commercial Real Estate Industry”
Slashes to the federal budget as part of sequestration could hamper the commercial real estate industry. Because the federal government is a tenant in office buildings across the country and controls many infrastructure projects, the office sector and construction contractors will be hit hardest now that the cuts have taken effect. REITs with a bulk of their properties in and around Washington, D.C. saw their stocks slip this week as the deadline loomed. See how else the sequestration will affect commercial real estate at World Property Channel.
Fox Business: “Is Commercial Real Estate Due for a Rebound?”
Bob Gray, managing principal for Terracap Management, spoke about the condition of commercial real estate on Fox Business’ Markets Now. He predicts commercial real estate growth will coincide with population growth, and areas like Florida that have seen recent population booms could recover faster. Bob also pointed out that while vacancy rates are falling, new construction rates are low, and overall, the industry is still in recovery mode. Watch his full interview at Fox Business for more insights.
New York Times: “After Years of Delay, a Lower East Side Gap is Ready to be Filled”
One of Manhattan’s largest undeveloped tracts of land is finally poised for a change. The city is now accepting development proposals for the area located in the Lower East Side neighborhood. Together, nine sites make up 1.65 million square feet of space for potential redevelopment that have sat vacant since 1967. Proposed development includes affordable housing, open public space, a school, and commercial uses. Read more about what the city hopes to do with the open plots at the New York Times.
Wall Street Journal: “Miami Condo Loan Marks Milestone”
A Miami condominium project recently marked a post-recession milestone. The project’s developers received the first major construction loan for a new condo tower in Miami since the housing bubble burst. Before the recession, these projects were common but cranes and construction sites have been absent from downtown Miami since 2009. Read more about this encouraging sign of recovery for one of Florida’s largest cities.
Washington Business Journal: “Congress to consider new real estate lease prospectuses”
The first round of large federal office leases are up for review in front of a house committee. Sixteen federal leases that surpass Congress’ $2.7 million per year limit will be reviewed by the Transportation and Infrastructure Committee. Dive into the government’s real estate dealings at the Washington Business Journal.