The Real Estate Roundtable’s Q1 Economic Sentiment Index reports that industry executives, while optimistic about the future, remain uncertain about current market conditions, citing inflation, rising interest rates and supply chain disruptions as concerns. However, executives also said that perceptions and outlooks differ across asset classes, with some sectors remaining strong and others showing concerns. 

The Q1 Index registered an overall score of 44, an increase of five points from the previous quarter. The Current Index component registered at 31, a two-point increase from Q4 2022, while the Future Index posted a score of 58 points, an increase of10 points. 

Roundtable President and CEO Jeffrey DeBoer said, “Fundamentally, our Q1 index illustrates that the trends accelerated by the pandemic have led to mixed performances across asset classes. Multifamily and industrial assets have maintained steady growth due to increased housing demand and supply chain needs, while hospitality and student housing are regaining momentum. But in the office sector, remote work policies, concerns over crime and transportation are driving record-high vacancy rates throughout the country, hurting city budgets and small businesses.”