December 18, 2009
A new Senate bill that just passed committee would drive the creation of more science parks around the U.S. Specifically, the bill would allow the Secretary of Commerce to guarantee up to 80% (!) of loans over $10m for the construction of science parks.
Whoa, good thing that. After all, we don’t have nearly enough vacant office space in the U.S. Rates are only running at a near-record 16.5% (according to Reis), with many cities at 20% vacancy and higher. And commercial real estate loans extant are merely teetering and threatening to bring down the regional banking system, so adding a few million more square feet will just give the system a helpful shove into complete insolvency.
Hopefully this works for rehabs because new construction is a ways away.
[via Infectious Greed]
- AIG, The Bailout, and Legacy Partners
- Next Wave of Stress Tests To Focus on CRE
- Banks Quick to Adopt New FDIC Guidelines
- Obama Raising Small Business Administration Loan Guarantees
- RBS: Bank Failures May Reach 1,000 on Bad Commercial Loans