To no one’s surprise, legislators weren’t able to fashion a compromise to avoid a shutdown of the U.S. government.
But what does this mean for the commercial real estate market?
Peter Muoio, senior principal and economist with Auction.com Research, says that so far — with the shutdown still in its early stages — no one is panicking yet. But if the shutdown should drag on, the resulting uncertainty could slow the momentum we’re now seeing in the commercial real estate industry.
“The most significant immediate-term impact of the government shutdown is whether it rattles households and businesses,” Muoio said in a written statement. “So far this year, the decreased levels of uncertainty have supported stronger economic growth and, therefore, demand for both residential and commercial real estate. We must stress that a quick solution would clearly have less impact than a prolonged fight.”
In other words, it’s time for legislators to act like adults and do everything in their power to avoid derailing the country’s still-fragile economic recovery.
