In New Survey, Commercial Real Estate Insiders Express Strong Outlook for Industry But Worry About Job Growth and Potential Tax Increases
“Our members are optimistic, but sluggish job creation and the looming threat of higher taxes are their main worries right now,” said Thomas J. Bisacquino, NAIOP president and CEO.
WASHINGTON, D.C. – February 18, 2015 – (RealEstateRama) – According to a new survey of commercial real estate insiders who attended a leadership conference hosted by NAIOP, the Commercial Real Estate Development Association, the outlook for the commercial real estate industry remains strong despite growing concerns over sluggish job creation and higher taxes. 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 percent on capital gains and qualifying dividends for couples with income over $500,000.
Despite concerns over sluggish job creation and higher taxes, 52 percent projected strong growth in 2015 while 43 percent 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 percent 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.
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About NAIOP: NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP comprises 15,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiop.org.
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