One major factor holding back the economic recovery and business decision-making this past year or two has been uncertainty—economic, political and global. Now that the elections are over, here’s hoping that at least some of that uncertainty has been alleviated.
Of course, there remain concerns over factors such as the fiscal cliff—the combination of expiring tax breaks and spending cuts, totaling some $7 trillion, slated to go into effect at year-end. However, most observers believe Congress and the Administration would be crazy not to extend them or at least take actions to mitigate their impact. And, of course, there are also questions about the geopolitical climate—at this writing, there’s potentially another war starting in the Mideast—and the global economy (Europe’s still hurting).
Despite all these, I’m looking forward to 2013. Commercial real estate is still hot, with investment volumes at impressive highs. Lending is loosening up, with capital available for most feasible projects and deals.
Eventually, businesses have to make a decision to grow, or not, and consumers, well, still have to spend on basic items (the holiday sales over the next few weeks will give a better indication of the country’s spending wherewithal). And if the traditional property sectors don’t bounce back powerfully, there are great opportunities in niches like student housing, seniors housing, medical office and healthcare.
So here’s to recovery, and hoping that 2013 will see a pick-up in the pace of improvement.