A study by The Real Estate Roundtable found that although current conditions are stable with slow, steady growth over coming months, there is less optimism about how things may play out in the longer term.
"As the Trump Administration and Congress continue to consider ideas for tax reform, infrastructure investment and financial regulatory overhaul, The Roundtable's Q2 Sentiment Index is tempered by anticipation about what consequences the details of any eventual legislation could have on commercial real estate," said Roundtable CEO and President Jeffrey D. DeBoer.
The weakened optimism of the Roundtable since the first quarter results from challenges that the new administration in Washington has encountered in implementing certain policies, but real estate leaders believe there is still room for the current cycle in the sector to run.
"We continue to remain engaged on the policy front to communicate the vital economic role that CRE provides to communities throughout the country and the industry's ability to create jobs," added DeBoer.
For asset pricing, around a third believe that prices are ‘somewhat higher’ than a year ago but only 15% expect prices to be higher in a year from now while 48% expect them to be about the same as now.
Prices have reached or are reaching their peak in some property types including retail and multifamily. However, there is capital around for the best deals.
More market update:
Domestic policy and geopolitics are concerning leaders in the commercial real estate sector.