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Despite Political Uncertainty, CRE Industry Leaders Remain Confident for Q3
Commercial real estate leaders continue to express confidence and are secure market fundamentals remain strong in the latest survey by The Real Estate Roundtable. The Q3 2017 Economic Sentiment Index, registered at 50, two points down from the last quarter, despite political uncertainty.
The Roundtable’s Jeffrey DeBoer says, “As our Q3 Index shows, our industry leaders continue to conduct business, asset values are stable, equity capital is widely available, and debt funds have stepped in to fill the void for the lack of construction financing we have been experiencing over the past year.”
The report’s key findings include:
- Optimism has waned for two straight quarters, in light of the lack of regulatory changes in Washington, D.C.
- Responders are experiencing hesitation around decision making on the part of their tenants/clients, primarily attributed to uncertainty about market conditions and trepidation about the new administration in Washington, D.C.
- Most responders feel high-quality assets in primary markets are at peak pricing. A few responders suggested asset prices may be beyond peak, though there are many bidders for the highest quality assets.
- Despite the perceived slowing of Chinese capital flowing into the U.S. real estate market, most responders feel equity capital is widely available. Debt funds have stepped in to fill the void for construction financing.
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