News & Noteworthy

Article - Bruce Bronster Explains Impact of Government Shutdown on Real Estate Deals in Law360 Article
OCTOBER 01, 2013 | Law360

Law360 quoted Bruce Bronster (Partner, New York) in an October 1st article entitled "Market Anxiety Over Shutdown To Stall RE Deals" (subscription required), which details the impact that market uncertainty caused by the government shutdown will have on real estate deals across the country.

Bruce, explaining why real estate deals will likely be stalled, was quoted as saying the following:

  • "The markets are nervous. The stock market got crushed. The dollar has fallen. Insurance rates on long-term bonds have risen. There's anxiety in the market. The markets crave stability, and this is a humongous instability."
  • "Anxiety and the price of money are the two preeminent drivers in the real estate market. It's going to hurt the ability to get money for sales. Construction loans will be more difficult to get. It's just going to slow the pace of real estate."

The article also acknowledges one potential positive effect of the shutdown mentioned by Bruce, stating that, "it's possible that after the initial shock to certain deals, the broader real estate market could escape largely unscathed if a debt agreement is reached soon, because it is much, much slower to react to government and economic events than the stock and bond markets, according to Bronster."

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