Our History on Domestic Spending and Its Impact on Commercial Real Estate

The White House

How will “Made in the USA” efforts effect commercial real estate? It should create an explosion of growth. Every foreign company that decides to manufacture here to keep US business will need offices, warehouses, and manufacturing facilities. We should see office growth in the large seaboard states, while manufacturing and warehouse space grow through the core of the country. Already states like Kansas are seeking spec warehouse development – which has been unheard of since World War II. We also may see a spur in college education as Americans entering the job market will need to be specially trained to in these fields. Like anything, there of course will be potential pitfalls. With our current low employment rate, this means that as better jobs become available, we need to count on not just the unemployed but also the underemployed job markets. Already we see both big cities and rural areas employers offering lower paying customer service work and not finding employees to fill positions. Everyone from Wal-Mart to McDonalds will be struggling to find help, which means that we could see more empty stores and a consolidation of these services. If history repeats itself, then domestic spending could work. For how long? That will depend on whether congress continues to buy in.

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