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CREFC Survey Reports Fifth Consecutive Quarterly Drop in Sentiment
The CRE Finance Council (CREFC) said its Third-Quarter 2022 CREFC Board of Governors Sentiment Index showed that overall sentiment dropped again, from 70.7 in Q2 to 61.4 in Q3, a 13% decline. This is the fifth consecutive quarterly decline and follows Q2’s 12% drop in overall sentiment.
All but one of the survey questions saw negative shifts from Q2. The questions with the most significant movements revolved around expectations for CRE fundamentals, the impact of trends in CMBS and CRE CLO demand/spreads, and the overall outlook for CRE finance businesses. In particular, 83% of the board expects fundamentals to worsen, compared to 34% in Q2.
“The shape of the commercial real estate debt market changed very quickly in the third quarter, and the surveyed responses reflect that swift shift,” said CREFC executive director Lisa Pendergast. “We remain optimistic, however, that despite the increased likelihood of a recession, we are in a much better position and stronger place than we were as an industry in 2008.”
- ◦Economy
