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Balanced, Strong Market Conditions Projected into Q3, Future Concerns Emerge
Commercial real estate industry executives continue to expect balanced and stable market conditions to prevail in Q3 2018. Though there’s growing concern that the market may be at peak pricing and could be nearing the end of its current cycle, according to the Real Estate Roundtable’s Q3 2018 Economic Sentiment Index.
Roundtable’s Jeffrey D. DeBoer says, “As we move into the second half of the year, we continue to see robust markets, with debt and equity available, and asset values strong. The commercial real estate industry remains confident for the remainder of 2018. The positive snapshot of current commercial real estate markets reflects a general absorption of recent interest rate increases, coupled with overall economic stimulation from tax reform.”
The Index registered at 52, a one-point increase from the last quarter. This quarter’s Current-Conditions Index of 56 increased four points from the previous quarter, and rose 5 points compared to the Q3 2017 score of 51. However, this quarter’s Future-Conditions Index of 49 is a seven-point decrease from the Current-Conditions index of 56.
DeBoer added, “Looking to future market conditions, industry executives are noting uncertainties regarding the November midterm elections, and growing interest rate and international trade concerns.”
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