The CRE Solution: Commercial building tax deduction to stimulate private spending for energy efficiency renovation.
Without swift intervention, the commercial real estate (CRE) crisis will cripple the economic recovery, raise unemployment, and lead to scores of small business and community bank failures. To avert this crisis, Architecture 2030 recommends that Congress implement the ‘CRE Solution ’, providing a fully tradeable and transferable tax deduction tied to specific energy reduction targets that will create 1.3 million jobs while restoring credit capacity and liquidity in the CRE market. The Problem Commercial real estate (CRE) transactions have dropped a staggering 90 percent since 2007. Between now and 2014, $1.4 trillion in CRE loans will be coming due; half of these currently are underwater. Commercial property values have plummeted by more than 40 percent, and commercial vacancies continue to increase. In addition, the construction industry has lost over two million jobs lea...