So, it is Halloween week and it occurred to us that, just as we shiver in anticipation of that goblin around a dark corner, commercial real estate is not immune from the fear of uncertainty. Changes in the Capital gains tax and in the FASB rules for lease expense accounting are looming on the horizon. The uncertainty is what is scary. It appears that FASB will require conformance with the practice common elsewhere in the world – carrying of all lease obligations on a balance sheet. The capital gains tax requires some legislative and executive branch action to preserve current rates.
The good news is that this stuff need not be scary. Working with professionals in real estate, law and accounting, owners, buyers and lessees of commercial real estate can make informed, logical decisions based on current and anticipated market, legal and financial conditions. The market information is current and ready – NAI CIR just updated our Harrisburg Regional Commercial Real Estate Market Report.