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CREFC Sentiment Index Registers Sharp Upturn from Prior Quarter
The CRE Finance Council (CREFC) said Thursday that its Fourth-Quarter 2023 Board of Governors (BOG) Sentiment Index survey marked a significant upturn, registering at 109.9 – a 33% increase from the previous quarter’s 82.7. This represents the largest quarterly increase since the survey’s inception, indicating a notable shift in industry sentiment.
While the survey’s core questions on topics such as economic optimism, industry sentiment, and financing and liquidity painted a broadly positive picture, the additional open-ended responses highlighted some concerns, according to CREFC.
These included apprehensions about rate cuts amidst a slowing economy, multifamily sector challenges, and uncertainties in financing and liquidity. Concerns were also noted about the potential for increased inflation, slower GDP growth, and sector-specific issues such as multifamily oversupply and office sector stagnation.
“The significant rise in the Sentiment Index underscores a cautiously optimistic outlook in the CRE finance industry, said Lisa Pendergast, executive director, CREFC. “While we are navigating through a landscape of economic uncertainties and sector-specific challenges, the overall sentiment reflects confidence in the resilience and adaptability of the market. It’s a testament to the industry’s robustness in the face of evolving macroeconomic conditions.”
- ◦Financing
- ◦Economy
