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Real Estate Roundtable’s Q1 Sentiment Index Projects Cautious Optimism
Notwithstanding continued challenges facing the commercial real estate industry, the Real Estate Roundtable’s overall Q1 2024 Sentiment Index rose 17 points from the fourth quarter of 2023 to 61. The Current Index registered 53, a 21-point increase over Q4 2023, and the Future Index posted a score of 70 points, up 13 points. Both increases point to cautious optimism in the real estate market.
Roundtable president and CEO Jeffrey DeBoer said, “Our current Sentiment Index shows improved optimism by industry leaders, compared with previous surveys that highlighted significant market concerns. The Q1 sentiment continues to note challenges presented by ongoing tight capital markets, increased operating expenses, and the continuing uncertainty of post-pandemic, in-office work. However, as the interest rate environment appears to have settled somewhat, executives are now expressing increased optimism that values and capital availability will improve in 2024.”
DoBoer added, “As we look at the current and future landscape of commercial real estate, it’s clear that we are at a pivotal moment. With nearly $3 trillion of commercial real estate loans maturing in the next four years, it remains very crucial that lenders continue to work constructively with borrowers to reflect both current and expected economic growth. Markets and asset values continue to adjust and stabilize as office use, interest rates and inflation begin to normalize.”
- ◦Economy
