From everyone at KC Company, we want to thank you for your business and look forward to more successful years with you in 2010!

Yesterday, I attended Baltimore Busines Journal’s “Road to Recovery” event featuring regional economist Anirban Basu, Chairman & CEO, Sage Policy Group, Inc. The general theme throughout is that the economy is showing signs of a slow recovery and the Baltimore/Washington region is fairing far better than most other areas of the United States. Basu presented the complex data in a simplified format so that even I, with limited economics exposure, could understand it.

Key takeaways from Basu:

Buy residential property now. Interest rates are at an historic low. Properties in states plagued by foreclosed properties and an excess of inventory, such as Florida, Arizona, and Nevada, are a good place to start. The early decade years experienced a building boom with little to no matched demand. Couple that with speculative buyers who purchased homes when prices were at their highest, and you have areas with a glut of houses on the market selling for far less than market value.

Commercial Real Estate is heading for tough times. A lot of commercial space will be available to lease within the next few years. Companies are downsizing while the price of commercial space has dropped. Basu mentioned that it will be years before we see any projects like Habor East on the horizon for Baltimore, but there may be a silver lining; if private industry grows and is ready to step in when the stimulus money dwindles, the impact on commercial real estate will not be as significant.

Baltimore/Washington will fair better than other areas. Let’s face it, we are neighbor’s with Uncle Sam and a lot of stimulus money is going to be ear-marked in and around the Beltway. BRAC is going to have a direct impact on thousands of new jobs in the area and the businesses around the growth should also benefit.

Baltimore City taxes will go up. Basu explained the city’s short-sighted plan – increase the taxes on the already over-burdened city residents. City services are decreasing and residents are continually asked to pay more in taxes. Mr. Basu and I are in complete agreement that reducing city taxes would have a positive effect in the long term. It’s important to note that Baltimore County taxes are roughly 60% less than in the city.

That’s my take on Basu’s economic evaluation. I’d love to hear your opinion on what 2010 will bring.

It Starts with One Can

The most unique way to help your community starts with one can. On March 27, Northern Virginia Architects, Designers, Engineers, Contractors, and Students will meet at Ballston Common Mall in Arlington, VA to design and build structures made entirely of canned food. (continue reading…)

Canstruction is a really cool event put on by the Northern Viriginia AIA. This was the first year that K.C. Company was involved and it was well worth it. I attended the planning meeting, as well as the “build out” night on Friday, April 4th. (continue reading…)

March 2008, the IRS extended the Energy Efficiency tax deduction for commercial buildings with the Tax Incentive Assistance Program (TIAP).  While only some of the rules have changed – there is an opportunity for efficiencies – so don’t let all that (continue reading…)