WASHINGTON, DC-Adding to the chilling effect of governmentuncertainty on development that a newly published NAIOP Research Foundation report cited,Congress and the Obama administration have continued theirshowdown—or standoff—on the partial federal government shutdowninto a second week. This will be followed by a likely battle overraising the debt ceiling. Neither event is making an immediate markon CRE, but NAIOP president and CEO ThomasBisacquino tells GlobeSt.com that the overhang in terms ofbusiness confidence will be with us for awhile.

“A government shutdown doesn't immediately impact commercialreal estate, because CRE is such a long-term play,” saysBisacquino. “If we're partners in a development project and theproject is moving forward, it doesn't immediately put ice on ourconfidence.

“But on the flip side, if you look at Washington from thestandpoint of whether the politicians can work together and moveeffective public policy forward, it does start to put up a littlecloud,” he continues. “It detracts from people's confidence. And ifyou're contemplating a $10-million project or a $10-billionproject, whatever it may be, it all gets into looking down the roadand being confident.” The debt-ceiling issue will be clearer nextweek, he adds, but while these matters may have little immediateimpact, “it clearly gives people pause. And a pause is notgood.”