The Real Estate Roundtable has released its findings from the latest quarterly “Sentiment Survey” of senior commercial real estate executives which suggests that absent strong improvement in U.S. job markets and demand for business space, the nation’s commercial real estate sector will likely continue its slow, “bifurcated” recovery over the coming year. The survey collected market opinions from over 110 senior real estate executives, including CEOs, presidents, board members, and other executives from a broad set of industry sectors including owners & asset managers, financial services providers, and operators & related service providers. The full report can be read here.
"It's all about jobs," said Roundtable President and CEO Jeffrey DeBoer. "Individual segments of the market may be recovering, but until private sector job creation picks up, we will not be out of the economic danger zone. The huge pipeline of maturing commercial mortgages and large fiscal issues facing state and local governments are additional 'headwinds' that could impact recovery in the broader economy and commercial real estate. The flatter trajectory we're seeing in the Q2 Sentiment Index is a reflection of these ongoing economic risks and uncertainty."
"Congress needs to help bridge the massive 'equity gap' between today's diminished property values — particularly in second-tier markets — and the high levels of debt that must be refinanced and paid off," said DeBoer. "Policy action is also needed to make the nation more competitive on a global level. Until that is achieved, industry optimism will remain dampened due to economic weaknesses that remain far from resolved."
For more news and information visit Blumberg Capital Partners.
No comments:
Post a Comment