Perfect Storm?

The federal government estimates $1.4 trillion worth of commercial real estate loans will be coming due over these next 4 years.  Of these 1/2 are “underwater” meaning the loan exceeds the current value of the property.   With most municipalities also “underwater” in their revenue to budget there is not likely to be any property tax relief to help these struggling property owners.  In fact, the opposite will likely be true, resulting in cities and counties pursuing tax lien revenue from the distressed properties.   Will we soon be witnesses to the execution of the goose laying the golden eggs?  Wouldn’t a preferable solution be the downsizing of the governmental agencies (reducing costs) and a reduction of tax liabilities to assist the struggling property owners (and ultimately their tenants/customers – read, you and me)?   The choice looms large at all levels of government as we scan the horizon ahead.

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