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Roundtable Sentiment Survey Cites Challenges with Liquidity, Price Discovery
The Real Estate Roundtable’s Economic Sentiment Index dropped to an overall score of 41 in the second quarter, three points lower than in Q1. In the Roundtable’s survey, commercial real estate executives noted how remote work, high interest rates, operating cost escalations and difficult price discovery have led to significant uncertainty in the post-pandemic office sector and reduced liquidity for nearly all commercial real estate asset classes.
Industry leaders also reported relatively healthy Q2 demand for industrial, multifamily and strip center retail assets. Solid rental growth in multifamily, senior, student and assisted living sectors was another positive trend reported by sentiment survey participants.
Roundtable president and CEO Jeffrey DeBoer said, “The commercial real estate market is at the center of a major transition. Maturing office loans in particular face a new environment of higher operating and financing costs, much tighter bank lending requirements, and uncertainty in business space needs.”
“However, while there is relatively good current news from non-office CRE sectors, the combination of reduced liquidity, increased costs, and post-pandemic business uncertainty threatens to spread to these other sectors as well—and potentially cause great damage to communities, jobs and the economy.”
- ◦Sale/Acquisition
- ◦Financing
