Dive Brief:
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Commercial developers are optimistic about the outlook for real estate this year, but said they worry about tax increases and “sluggish” job creation.
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A survey of more than 100 industry professionals by the Commercial Real Estate Development Association revealed that nearly half believe job growth could slow down development.
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Still, 52% of those in the survey forecast a year of strong growth for commercial real estate, and 43% said the industry is likely to remain stable.
Dive Insight:
What keeps commercial developers up at night, however, are Congress and the White House. Of those in the survey, 90% said they are concerned about President Barack Obama’s 2016 budget proposal, which would raise the ceiling on capital gains taxes to 28% for couples with incomes of more than $500,000.
“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,” association President and CEO Thomas J. Bisacquino said in a press release.
He added: “We need strong and consistent policies from Washington that encourage investments in development projects so more Americans can share in our economic recovery.”