Many in the commercial real estate industry are speculating whether 2021 may finally be the year that the U.S. Congress funds a bipartisan comprehensive infrastructure plan. Ambitious proposals before U.S. Congress would modernize roads, bridges, ports and more—and conceivably serve as a strong economic stimulus. The CRE community may have plenty of reasons to get behind these goals.
Smart investments to improve the roads, ports, utilities and other vital infrastructure have the potential to unlock tremendous value for the overall economy, as well as for commercial real estate. Economic Policy Institute research indicates that an investment of $18 billion annually into infrastructure would create a first-year increase of $29 billion in GDP and 216,000 net new jobs.
Infrastructure investment already boasts a proven track record as an effective source of jobs and economic stimulus—starting as far back as the Works Progress Administration created during the Great Depression of 1929. More recently, the American Recovery and Reinvestment Act (ARRA) of 2009 included infrastructure spending to lift the nation out of the dramatic 2008 recession. Today, most economists agree that ARRA reduced unemployment and spurred economic recovery for years.
Photo by Alex Azabache from Pexels