NAIOP Responds to State of the Union Address, January 29, 2008
Washington, D.C. – In response to President
Bush’s State of the Union address last evening, Thomas J.
Bisacquino, president of the National Association of Industrial and
Office Properties (NAIOP), issued the following statement:
“NAIOP commends the president for recognizing the need to ensure a strong economy, and hopes that the administration and Congress can move an economic stimulus package quickly. Commercial real estate accounts for $494.8 billion of the Gross Domestic Product and 4.2 million jobs across all sectors of the economy, according to NAIOP Research Foundation’s The Contribution of Office, Industrial and Retail Development and Construction on the U.S. Economy. In order to ensure a healthy economy, the commercial real estate sector must be taken into account.
To that end, it is imperative that Congress quickly pass tax provisions that expired in 2007. If not renewed, these would adversely impact the commercial real estate industry. Congress must renew tax provisions that provide for 15-year depreciation of leasehold improvements, the customized alterations a building owner makes to rental space as part of a lease agreement in order to configure the space for the needs of that particular tenant. In addition, Congress needs to renew tax provisions on brownfields remediation expensing to convert contaminated urban sites into usable, economically viable areas.
NAIOP is especially pleased with President Bush’s Advanced Energy Initiative, investing more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy. NAIOP looks forward to serving as an industry leader in this field, working with its members and Congress to advance the development of more energy-efficient buildings while protecting the prosperity of the industry.”
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About NAIOP: The National Association of Industrial and Office Properties is the nation's leading trade association for developers, owners, investors and asset managers in industrial, office and mixed-use commercial real estate. Founded in 1967, NAIOP comprises more than 16,500 members in 55 North American chapters and provides networking opportunities, educational programs, research on trends and innovations and strong legislative representation. For more information, visit www.naiop.org.
“NAIOP commends the president for recognizing the need to ensure a strong economy, and hopes that the administration and Congress can move an economic stimulus package quickly. Commercial real estate accounts for $494.8 billion of the Gross Domestic Product and 4.2 million jobs across all sectors of the economy, according to NAIOP Research Foundation’s The Contribution of Office, Industrial and Retail Development and Construction on the U.S. Economy. In order to ensure a healthy economy, the commercial real estate sector must be taken into account.
To that end, it is imperative that Congress quickly pass tax provisions that expired in 2007. If not renewed, these would adversely impact the commercial real estate industry. Congress must renew tax provisions that provide for 15-year depreciation of leasehold improvements, the customized alterations a building owner makes to rental space as part of a lease agreement in order to configure the space for the needs of that particular tenant. In addition, Congress needs to renew tax provisions on brownfields remediation expensing to convert contaminated urban sites into usable, economically viable areas.
NAIOP is especially pleased with President Bush’s Advanced Energy Initiative, investing more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy. NAIOP looks forward to serving as an industry leader in this field, working with its members and Congress to advance the development of more energy-efficient buildings while protecting the prosperity of the industry.”
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About NAIOP: The National Association of Industrial and Office Properties is the nation's leading trade association for developers, owners, investors and asset managers in industrial, office and mixed-use commercial real estate. Founded in 1967, NAIOP comprises more than 16,500 members in 55 North American chapters and provides networking opportunities, educational programs, research on trends and innovations and strong legislative representation. For more information, visit www.naiop.org.