Prospects for continued recovery in the commercial real estate market in the U.S. continue to be depressed by macroeconomic issues, according to a survey by The Real Estate Roundtable.
The Overall Sentiment Index for the third quarter fell to its lowest value since 2009, dropping from 77 to 69 on a 100-point scale. Executives in the retail, office and hospital industries who responded were mixed on whether the present environs for commercial real estate would improve in a year, and whether the current conditions are better today than a year ago.
Overall, respondents felt that the real estate market as a whole was looking better than a year ago, but felt the market would not continue to improve. Improvements, they noted, would largely depend on whether the rental rate improves and vacancies are absorbed.
"Market conditions are influenced by policy developments, so the outlook of the nation's top real estate CEOs is much less optimistic this quarter, said Jeffrey D. DeBoer, Roundtable President and CEO. "Policy debates focused on reducing the federal deficit are now colliding with the ongoing need to spur job creation."
Respondents noted the fragility of the current economic recovery, including stronger investor interest and commercial property asset values in the third quarter.