Saturday, February 6, 2021

Will the Economic Stimulus Bill Stimulate Commercial Real Estate?

While some of the details could change, we know that money--lots of money--will be headed out of Washington and into the hands of taxpayers.  Some of them have already received checks, either individually, or through the PPP or other Federal programs.  What will be done with all that cash?

It seems like a safe bet to say that some of it may well be pumped into the real estate market.  The stock market is already high, and somewhat volatile.  Some people will decide instead to invest in tangible assets, and real estate is definitely in that category.  

Once the decision to invest in real estate is made, buyers will shop for the best deals.  And Greater New Haven offers some great deals in this sector.  There is a great need for rental housing, and a built-in student population, which is transient.  Those same students also have disposable income to spend on retail, dining, and entertainment.  They may also work in start-ups and tech companies, which will have at least some need for office and lab space.

That puts Greater New Haven firmly on the "buy" list. Adding its central New England location as a warehouse and distribution hub, and the index for buying is even stronger.  Prices have lagged in commercial real estate and, unlike residential, have not been helped by the pandemic.  It's time to change that.

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