RICS-AFIRE Survey Sees Declines in Sentiment
The Q1 2020 RICS-AFIRE North America Commercial Property Monitor results show the spread of the coronavirus pandemic exerting a significant impact on the real estate market. Key metrics capturing sentiment among occupiers and investors are moving into negative territory in both the U.S. and Canada, following a generally positive Q4 outlook.
In particular, U.S. investors and occupiers’ expectations for rents and capital values are down. However, while retail and office both show declines in investor confidence, the outlook is brighter for primary-market multifamily and industrial. Moreover, capital is expected to be deployed in the U.S. instead of other markets.
“While sentiment is a tough metric to track in the midst of a pandemic, these data tell an important story over time,” said AFIRE’s Gunnar Branson. “Before the coronavirus, investors came into 2020 feeling positive about U.S. real estate. These results advance that narrative, but with some smart and necessary caution.”
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