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Gov. Deval Patrick to Fund Construction Projects in State

As I was driving today, I had to maneuver around many construction signs. And while that may be somewhat annoying, it felt good, too.

It felt good because the construction is so much better than the stagnation we've felt in the past two years.

And Boston real estate lawyers will tell you what construction projects mean for the overall state of the real estate market.

Or, at least they'll debate what it means.

At some point, construction was dead. There was nothing being built. When I asked a small-town mayor his opinion, he said that construction projects would likely be on hold until credit unfroze. Essentially, he told me that the construction projects need funding. And without the funding, there would likely be a halt on construction.

It's hard to say whether banks have eased up on lending yet. I imagine we're still too early in the economic recovery to start making statements like that. But one thing I've always found interesting was the impact of state funds and government issued bonds to help with the financing of construction projects.

Massachusetts Governor Deval Patrick announced that he plans to inject up to $200 million of state funds into the funding of building projects. This funding plans to support the construction of hundreds of new homes, stores and offices.

Interestingly, not all of the state money is going to the construction of new buildings. Some of it plans to replace buildings that are an eyesore with parking lots.

While the government can spend on construction projects, there still needs to be some lending in the private sector. And with the tight purse strings of banks these days, it's difficult to see whether developers can get more than $50 million from the banks.

Boston real estate lawyers are skeptical about this new initiative. Essentially, they are asking "why build when we've got empty office space?".

This topic is one which will surely be debated by Boston real estate attorneys and brokers for months to come.

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