We have all witnessed how proactive the Federal government can be. Cash for Clunkers, the First Time Home Buyer Tax Credit are successful examples. It is no secret that the commercial real estate market is experiencing the same problems as the residential side has. Commercial properties are going into foreclosure, new loans are getting more and more difficult to obtain and large projects are being stalled or canceled.
In an article on Wall Street Journal, Phil Izzo brings up an interesting point citing the Federal Reserve’s latest beige book. The Feds are getting increasingly concerned about the state of the commercial market (as they well should be). Whenever the Feds get overtly concerned about something, they tend to act (at least the new administration has). He notes that the only sectors that show any grow are all federal projects supported by stimulus dollars.
The numbers show that the First Time Home Buyer tax credit has helped sales in the residential market over past several months.
So….is it too far fetched to think that the government may try to offer the something similar in the commercial market to stimulate sales?
