{"id":1004057271,"date":"2013-01-07T14:55:58","date_gmt":"2013-01-07T22:55:58","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004057271"},"modified":"2022-12-06T19:33:51","modified_gmt":"2022-12-07T03:33:51","slug":"after-the-election","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/after-the-election\/","title":{"rendered":"After the Election"},"content":{"rendered":"

What Four More Years Means for Commercial Real Estate<\/strong>
\n<\/em><\/p>\n

By Michael Ratliff, Senior Associate Editor<\/em><\/p>\n

\"\"<\/a><\/p>\n

Now that Washington has shifted out of campaign mode, all eyes are on our leaders to clear up the fog of uncertainty that continues to hinder economic recovery. While the election outcome did reinforce a divided government, both industry and political experts are optimistic that the House, the Senate and President Obama are up to the task of working through this gridlock to tackle the fiscal cliff and budget deficit.<\/p>\n

\u201cI am more encouraged moment to moment that we are going to see a dawn of bipartisanship,\u201d said Raphael Bostic, director of the Bedrosian Center at the University of Southern California and former assistant secretary of the Department of Housing and Urban Development under President Obama. \u201cThe one piece of uncertainty, however, is that there is this constituency of House Republicans that are extremely ideological, and they have declared themselves unwilling to compromise on anything. We will just have to watch and see whether House Speaker Boehner can manage that part of his caucus. If he can do that, I think that we are looking good.\u201d<\/p>\n

Bostic expects to see a robust period of economic growth once the uncertainty over the particulars of cuts and revenue generators is resolved. While a major caveat in his outlook is Europe\u2014particularly economic exposure that some U.S. companies may not have yet internalized\u2014Bostic believes that the United States will remain the flight-to-safety location. This is good news when it comes to capital availability for all aspects of business, commercial real estate included.
\nWhile both parties have adopted a more civil tone since the fracas that birthed the Budget Control Act of 2011, though, there is not likely\u00a0to be a permanent bridge over the fiscal cliff anytime soon, cautioned Joe Markling, chair & chief elected officer at BOMA International, as well as a managing director of strategic accounts at CBRE Group Inc.<\/p>\n

\u201cMy thought is that we are going to have another patch that is going to get us through the end of December with the promise of some change\u2014the so-called \u2018grand bargain\u2019\u2014but there will still be some uncertainty,\u201d Markling said.
\nHe added that the Obama administration seems to believe that the re-election is a mandate for the \u201ctax-the-rich plan.\u201d This will inherently add to the partisanship surrounding the fiscal cliff, as both parties are up against a wall of compromise. If the Republicans give on taxes, the Democrats will have to give on spending cuts and entitlement reform. Markling hopes that the current administration is successful, as both he and his members are looking for the government to get its house reasonably in order, or at least tidy enough to allow for some form of short-term certainty.<\/p>\n

\u201cIt is just a fog bank out there at the moment,\u201d he added. \u201cIf you are buying a building this year and you don\u2019t know what the capital gains rate is going to be, and you don\u2019t know what the leasehold depreciation rate is going to be, all of a sudden there are variables added into your risk model. That is what is hurting our industry right now: the uncertainty of it all.\u201d<\/p>\n

One thing that is certain, however, is that the Obama win benefits a specific set of office tenants. That group includes law and accounting firms, health insurance companies and the federal government, according to a report issued by CoStar Group\u2019s Property and Portfolio Research. Together, these sectors occupy about 23 percent of national office space and may require a larger footprint down the road once uncertainty dissipates and the economy improves, according to Hans Nordby, managing director of PPR, who leads a team of 47 economists. A Romney win, on the other hand, would have benefited business services, transportation, manufacturing and utilities\u2014which together take up about 25 percent of national office square footage. But regardless of who is now sitting behind the Resolute desk, Norby is optimistic about a thoughtful resolution\u2014though it may take some time.<\/p>\n

\u201cThe government will be making some hard choices like they did in the \u201992 to \u201996 period to cut back on spending. In that case, the government shut down in 1994 and everyone thought it was the end of the world. And you know what? It was a good thing. People focused on the money and the income, and they brought the budget into balance and the economy grew strongly. The track record of gridlock is that it is the best thing for the U.S. economy ever. Bring it on.\u201d<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

What four more years means for commercial real estate.<\/p>\n","protected":false},"author":952,"featured_media":1004057272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37301],"tags":[],"class_list":["post-1004057271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nAfter the Election - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/after-the-election\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"After the Election\" \/>\n<meta property=\"og:description\" content=\"What four more years means for commercial real estate.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/after-the-election\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2013-01-07T22:55:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-07T03:33:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2013\/01\/LAW.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"348\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anna Spiewak\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/after-the-election\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/after-the-election\/\",\"name\":\"After the Election - 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