June 4th, 2011, By Dana Haugh
In the past week, there has been a big push to lower the national deficit… by getting rid of excess federal real estate. Last week, the House subcommittee on Economic Development, Public Buildings & Emergency Management approved a Civil Property Realignment Act and released a map of 14,000 federal properties that could be targeted for sale. And this could just be the tip of the iceberg!
But what could this mean for you? Reducing the federal “CRE footprint” will impact rents, construction, and supply. If the government pulls out of commercial space, there will be an increase in vacant space in the CRE market that will most likely remain vacant. If your business’s customer base relies on employees working for the government, you may be facing a decline in revenues. Landlords and the entire CRE industry can expect an increased reliance on corporate hiring and investment levels. Will America be able to pick up its rate of hiring and investment levels enough to offset the reduced demand? Only time will tell… Read more at CoStar