CREDA Sentiment Index Declines on Interest Rates, Construction Costs

The Commercial Real Estate Development Association (CREDA) said Thursday that its CRE Sentiment Index for Fall 2026 declined to 48 from 52 six months earlier. The latest reading, based on a survey of 401 respondents conducted from Sept. 15-23, is the first to come in below the break-even level of 50 since September 2023.

Driving the decline were concerns over interest rates and construction costs. The favorability score for interest rates slid to 31 from March’s reading of 52, the largest decline between readings since April 2022. Respondents are now more pessimistic about construction material and labor costs than at any time since the April 2022 survey.

On the plus side, respondents expect stronger fundamentals than they did in March. They also expect transaction and project volume to increase, although the current environment favors investments in stabilized properties over new development.

“This fall, respondents are telling us that property-level performance remains strong, while uncertainty around capital markets, costs and policy is shaping when and where new development makes sense,” said Marc Selvitelli, CAE, CREDA president and CEO.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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