The optimism expressed by commercial real estate executives in the last three months of last year has continued into 2018
The optimism expressed by commercial real estate executives in the last three months of last year has continued into 2018.
The Real Estate Roundtable’s Q1 2018 Economic Sentiment Index reveals that leaders are confident in the economy and current real estate markets but are more concerned about the outlook for 2019.
“Commercial real estate executives continue to anticipate strong near term asset values and capital availability," said Roundtable President and CEO Jeffrey DeBoer. "Strong, growing commercial real estate markets go hand in hand with overall positive economic growth. Moreover, healthy commercial real estate markets directly benefit local communities by providing significant revenue to support local budgets and services."
Executives are optimistic that the market will be stable this year with debt and equity capital sources available for high quality investments in primary markets. Many believe alternative lenders are increasing competition.
More than a third of respondents say that asset values in these markets are “somewhat higher” than a year ago but 57% believe they will be about the same a year from now.
Why the concern for 2019?
"Participants in our Q1 Index survey also report that current market conditions may not last throughout next year, explained DeBoer. “In the meantime, The Roundtable plans for the remainder of this year to work with Congress and Treasury to ensure that the Tax Cuts and Jobs Act is implemented effectively. We also look forward to working with policymakers and the Trump Administration on a national infrastructure plan that will create more jobs and further stimulate the American economy."