Commercial real estate executives report improving current markets and caution ahead

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The Q2 of the round table Current The sentiment score of 78 is an increase of 34 points from the first quarter, reflecting an increase in vaccination, a reduction in the number of positive COVID tests and measures to reopen businesses. The current sentiment score also contrasts with the economic environment of a year ago, when the current sentiment score hit 13, an 11-year low.

However, the sentiment reported in Q2 regarding Future Conditions posted a stable score of 75 – just one point higher than the previous quarter – reflecting lingering concerns about the long-term impacts of the pandemic.

President and CEO of the roundtable Jeffrey DeBoer said: “Industry executives are encouraged by the steady progress in vaccinations, rapidly falling infection rates and reopening businesses, but their lingering concerns about rising construction costs, inflationary pressures and labor supply resulted in a more measured outlook. “

“While the long-term economic repercussions of the pandemic remain unclear, Washington lawmakers should prioritize new policies that encourage continued economic growth over initiatives that could hinder recovery, ”DeBoer added.

The Roundtable’s survey for the Q2 Sentiment Index also shows that 83% of respondents believe overall market conditions today are “much better or somewhat better” compared to a year ago – and that the availability of capital remains abundant compared to a year ago.

Key findings from the Roundtable’s second quarter Economic Sentiment Index include:

  • An improvement in current market conditions
    The views of those interviewed reflect the progress of national immunization deployment and improvements in conditions in the near term, compared to an economic low of a year ago.
  • Growing values ​​for asset classes in demand
    Respondents report that investors are starting to increase asking prices for in-demand asset classes such as life sciences and storage.
  • Stable capital markets
    Most respondents cited an accessible capital market for debt and equities, especially compared to a much tougher global market a year ago.

The second quarter survey data was collected by Chicago-based FPL Associates on behalf of The Roundtable.

SOURCE The Round Table of Real Estate



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