WASHINGTON, DC—General positivity tempered by concern over major stumbling blockssums up a survey of industry insiders conducted at NAIOP's 2015 Chapter Leadership and Legislative Retreat Conference. Nearly half of the more than 100 respondents indicated that continued sluggish job growth was a major concern, while 90% predicted that higher capital gains taxes would have some impact on investment and growth, including many who said the impacts could be “severe.”

“Our members are optimistic, but sluggish job creation and the looming threat of higher taxes are their main worries right now,” says NAIOP president Thomas J. Bisacquino. “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.”

President Obama's FY 2016 budget proposal includes a proposal to raise the top tax rate to 28% on capital gains and qualifying dividends for couples with income over $500,000. It would entail bumping up the capital gains rate from its current 20% to 24.2% and then including a 3.8% Medicare surtax.

The state of inertia in Congress doesn't have NAIOP members feeling confident, either. Asked “what keeps you up at night?,” 27% of respondents said gridlock in Washington was a major concern. “We need strong and consistent policies from Washington that encourage investments in development projects so more Americans can share in our economic recovery,” Bisacquino says.   

Nonetheless, 52% of NAIOP members surveyed projected strong growth in 2015, while 43% saw the industry as remaining stable, sluggish job creation and higher taxes notwithstanding.