In its transition from an industrial economy to a knowledge-based one, Kendall Square in Cambridge, Massachusetts, has become the most robust innovation-based cluster in the nation—if not the world.
There seems to be a consensus that the stimulus programs have failed to meet the needs of the real estate sector, but objections appear to be directed more to tactics than to overall strategy, say several ULI council members.
Before the economy crashed, commercial property owners thought long and hard about retrofitting their properties for efficiency and environmental reasons. But today, survival has become building owners’ overriding goal, with deep-diving retrofits slipping down—or off—the list of priorities. Read more to learn when industry analysts expect once again to see a major spike in the retrofitting trend.
On Monday, August 8, Standard & Poor’s downgraded the credit rating of Fannie Mae and Freddie Mac from AAA to AA+, the same lower rating it assigned the U.S. government the previous Friday. While most analysts say that the downgrade of Fannie and Freddie will have minimal impact on the cost of capital, there is a psychological component to the downgrade that has to be considered. Read more.
The good news for Detroit is that many inside and outside its borders understand the city’s importance and are working hard for its return to health. The city’s problems present unprecedented challenges, but the goal for urban development practitioners remains the same: help a staggering national treasure get back on its feet. Read what is being done to keep to keep Detroit from drying up and blowing away.
Republicans and Democrats are in rare agreement that Fannie Mae and Freddie Mac failed in their mission to provide liquidity, stability, and affordability to the housing market and consequently should be either dismantled or radically altered. Lawmakers are virtually unanimous in the belief that the public/private Fannie/Freddie model is untenable. But there is a huge impediment to quick restructuring.
Four states have already enacted legislation that extends expiring building permits for additional periods of time, while several others currently debate the issue. Proponents tout the permit extension law as a low-cost economic stimulus initiative. Opponents of the blanket permit extensions say the laws are unnecessary and deprive municipalities of a formidable leveraging tool. What do you think?
In the current climate of economic distress,a common refrain among anxious observers is that the next shoe to drop will be commercial real estate, whose complex financing over the past decade has yet to be unraveled and, in the end, could send already fragile financial giants into a five-spiral crash.
