AUDIO: Creating jobs, avoiding commercial real estate crash
SANTA FE, N.M.
June 28, 2010
• Can Congress avert another economic disaster?
• ‘The commercial real estate crisis could cripple the economic recovery’
(Photo copyright 2008 Jamey Stillings)
The looming commercial real estate loan crisis could be averted before the market collapses and 1.3 million jobs could be created in one simple move.
That’s the call by Edward Mazria, chief executive officer of Architecture 2030, which describes itself as a non-profit, non-partisan organization established in response to the global-warming.
He says there could be dramatic job creation through limited energy efficiency tax incentives that would at the same time prevent a meltdown in the commercial real estate market.
"Without a swift plan from Congress, the commercial real estate crisis could cripple the economic recovery, raise unemployment, and lead to scores of small business and community and regional bank failures," says Mr. Mazria.
(Edward Mazria outlines his ideas in the Monday CVBT Audio Interview. Please click on the play button below to listen.)
Mazria is a co-author of a new report, "The Imminent Commercial Real Estate Crisis and The CRE Solution." The report recommends a three-year, tiered tax incentive tied to specific energy reduction targets, is being released at a critical time.
He notes that by 2014, $1.4 trillion in commercial real estate loans will be coming due -- with more than half of them currently underwater.
He sayts Congress can simultaneously address the looming CRE crisis and crippling construction unemployment through by increasing the existing Energy Efficient Commercial Building Tax Deduction from $1.80 per square foot to a range of $3 to $9 per square foot for new and existing commercial buildings meeting specific energy reduction targets.
Mr. Mazria, an architect with 40 years of experience, says that each $6 billion of deferred CRE revenue would generate $73.4 billion in new private spending, $15.9 billion in new federal tax revenue, and $5.25 billion in state and local government tax revenue, according to the report findings.