Does commercial real estate need a stimulus?

June 15th, 2009

Government stimulus and financial market intervention haven’t been this aggressive since the Great Depression, and we haven’t seen the last of it. Government loan facilities established last year are being modified, and new programs could help jumpstart stalled credit markets.

Government stimulus and initiatives alone won’t fix the economy, but the multitude of programs should ease the flow of credit, according to a new report on government intervention from Marcus & Millichap, “Government intervention, bank stress tests aim to restore confidence — will measures be enough?”

Marcus & Millichap’s question draws varied responses. Some believe the proposed Public-Private Investment Program (PPIP) will help. Others see the outlook as dim despite the government initiatives. Still others say it depends.

Even with the stimulus money and government intervention the outlook remains uncertain, said Robert Simon, a professor at Cleveland State University specializing in the economics of commercial real estate.

Click here to read the rest of my story on The Real Deal.

Entry Filed under: Hot off the Press