National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Real Estate Roundtable’s Economic Sentiment Index Drops Five Points from Q3
The Real Estate Roundtable’s Q4 Economic Sentiment Index dropped to an overall score of 39, five points lower than the previous quarter. Commercial real estate executives surveyed by the Roundtable cited a reduction in available equity and debt capital, changes in post-pandemic office use, general business cost cutting and employee layoffs among the contributing factors causing market uncertainty and a decrease in transactions.
Roundtable president and CEO Jeffrey DeBoer said, “Industry executives report that asset valuation difficulties, coupled with the tightened availability and cost of capital, have caused a slowdown in commercial real estate investment and overall transactions. This situation, magnified by steep inflation and interest rate hikes, is leading to investor hesitancy.”
DeBoer added that with office-using employers varying in their return-to-work plans, “greater clarity on businesses’ future post-pandemic workspace demands is needed to provide a more reliable window into asset valuations, particularly in the office sector.”
- ◦Economy
