Commercial Real Estate Executives Say Outlook Remains Uncertain, by The Real Estate Roundtable
Senior commercial real estate executives are increasingly positive regarding current and future market conditions, particularly as they relate to top-quality assets in major markets, yet they remain concerned about the slow pace of job creation, sovereign budget deficits and interest rate risks, according to The Real Estate Roundtable Q12013 Sentiment Survey.
Eight percent more survey participants rated current conditions as “somewhat better” than those of a year ago (compared to the Q4 2012 survey), while 16 percent more respondents projected “somewhat” to “much better” conditions one year from now. Yet, the recovery remains bifurcated geographically and in terms of asset quality — with valuations, equity, and capital availability recovering much more quickly in the 24/7 gateway markets (particularly for Class A real estate), as compared to B- or C-rated assets in secondary or tertiary markets.
Although all three indices rose in the current survey, and the survey trajectory remains positive, the index is still not back to where it was two years ago — before the 2011 debt ceiling crisis.
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