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Report: CRE Leaders Slightly More Optimistic About 2023 Than Business Other Leaders
Commercial real estate professionals are anticipating a recession in 2023. Yet in comparison with other industry leaders, they’re slightly more optimistic about the coming year, according to JPMorgan Chase’s Business Leaders Outlook.
The survey said that a large percentage of CRE leaders anticipate increases in their revenues and sales. The same percentage – 71% — also noted that their capital needs will increase. Meanwhile, 65% of those surveyed said they were optimistic about the industry’s 2023 performance, while 73% were optimistic about the performance of their companies.
Other takeaways from the survey include the following:
In the event of an economic downturn, 27% indicated they would make strategic acquisitions, while 27% said they would maintain the status quo.
Rising interest rates are a concern, with 67% noting that the increase cost of capital is driving up business costs.
Other issues raising concerns included a lack of affordable housing and supply chain factors.
When it comes to business growth plans, 54% of CRE leaders surveyed indicated they’re planning to expand into new domestic markets. Meanwhile, 37% are getting behind strategic partnerships and investments, while 36% indicated an introduction of new products. On the ESG side, 45% indicated a higher DEI focus, 43% said they’d increase their efforts on governance, while 41% said more effort would be directed toward social initiatives.
JPMorgan Chase’s 2023 survey is the first to encompass commercial real estate leader responses. The company’s annual and midyear Business Leader’s Outlook survey series offers insight into challenges and opportunities that U.S. midsize company executives face.
This year, 791 business leaders completed the online survey; of those respondents, 157 identified as working in commercial real estate.
- ◦Lease
- ◦Sale/Acquisition
- ◦Development
- ◦Economy
- ◦Policy/Gov't
