August 19, 2019
Commercial real estate industry leaders continue to see balanced and stable economic market conditions, according to The Real Estate Roundtable’s 2019 Q3 Sentiment Index. The latest survey registered a score of 50, a one-point decrease from the previous quarter. Both the Current-Conditions Index of 53 and Future-Conditions Index of 48 for this quarter remained the same from the previous quarter, reflecting the stabilized real estate market conditions and the overall economy.
Real Estate Roundtable’s Jeffrey DeBoer says, “As our Q3 Index shows, industry executives are entering the second half of the year with confidence in stable market fundamentals, supported by a solid economy with low employment.”
Other topline findings included:
– Survey participants are confident in today’s market dynamics. However, many respondents feel the U.S. real estate market has become fragmented during this cycle and is more accurately examined as a group of separate, but correlated markets distinguished by geographic location and property type.
– Many respondents feel a change in the market is imminent but are unable to identify a definitive potential cause for a decline as they recognize economic fundamentals appear strong. Nearly half of respondents suggested market conditions one year from now would be similar to the prevailing conditions today.
– Asset prices remain high for the best assets in the best locations.
– Availability of debt and equity capital remains strong for high grade investments.
“Although there is political uncertainty and the economic recovery is historical in length, commercial real estate market dynamics remain sound, with balanced supply and demand in most markets, and debt and equity readily available, particularly for high grade investments,” DeBoer added.
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