Real Estate Market to Take Hit From Sequestration
David Lari was quoted in a March 1, 2013 Law360 article about the possible fallout of sequestration, namely the fact that office landlords could lose key government leases and that the massive budget cuts that are proposed could have a negative impact on the recovery of the real estate market.
According to the article, the government spends millions of dollars leasing real estate around the country but could decide to end those leases due to the fact that sequestration will trigger $85 billion in budget cuts.
While very few players in the real estate market would be affected by the lease terminations, Lari told the publication that the implication of the massive cuts could leave developers and investors wary about real estate deals.
“If all of a sudden people lose some of the confidence that's been gained over the last several months, that could impact a lot of different sectors, including real estate,” Lari said.