How has the current state of the real estate capital markets affected the commercial real estate market?
Development and construction loans are very difficult to obtain on terms that will attract equity capital to invest in new projects. Most commercial developers and builders are, therefore, holding on to their cash and waiting for the capital markets to offer financing that can pencil out financially before attempting to start any new projects. What potential new federal regulations and tax laws are you monitoring? What do they mean? Regulators are closely scrutinizing bank loans with a strong bias against commercial real estate. Marginal rates on income taxes, capital gains taxes and estate taxes are scheduled to rise in 2011. Penalty taxes are threatened on large banks. These are meant to address the growing potential for commercial loan defaults and unprecedented federal budget deficits. They also add to the uncertainty in the market and, as a consequence, depress sales transaction activity. How workable are the city of Austin’s development regulations compared with other Texas citie
