Commercial Real Estate Executives Report Improved Current Markets and Caution Ahead | State
WASHINGTON, June 2, 2021 / PRNewswire / – Commercial real estate executives report that market conditions stabilized in the second quarter since the previous quarter, but note that worries about labor shortages, inflationary pressures, and the outcome of current policy proposals in. is clouded Washington, according to The Real Estate Roundtable’s Q2 Economic Sentiment Index released today.
The Round Table’s overall mood index is rated on a scale from 1 to 100 by averaging the current and future indices; Any result over 50 is considered positive. The overall sentiment for the quarter reached 77.
The current round table sentiment score of 78 is a 34-point increase over the first quarter due to increased vaccinations, a decrease in the number of positive COVID tests and the reopening of businesses. The current sentiment score also contrasts with the economic environment from a year ago when the current sentiment score hit 13, an 11-year low.
However, sentiment about future conditions reported in the second quarter saw a steady reading of 75 – just one point up from the previous quarter – reflecting ongoing concerns about the long-term effects of the pandemic.
President and CEO of the Round Table Jeffrey DeBoer said: “Industry leaders are encouraged by the steady advancement of vaccination, rapidly falling infection rates and business reopening, but their ongoing concerns about rising construction costs, inflationary pressures and labor supply have led to a more measured outlook.”
“As the long-term economic effects of the pandemic remain unclear, Washington Legislators should prioritize new policies that encourage continued economic growth over initiatives that could hinder recovery, “added DeBoer.
The roundtable survey for the Q2 Sentiment Index also shows that 83 percent of respondents are of the opinion that general market conditions today are “much better or slightly better” than they were a year ago – and that the availability of capital compared to before continues to be abundant for a year.
The topline results of the roundtable Q2 Economic Sentiment Index include:
- An improvement in current market conditionsRespondents’ views reflect the progress made in introducing national vaccinations and improvements in short-term conditions compared to the economic trough a year ago.
- Increasing values for popular asset classesRespondents report that investors are starting to raise asking prices for sought-after asset classes such as life science and storage.
- Stable capital marketsMost of the respondents named an accessible capital market for debt and equity, especially in comparison to a far more difficult overall market a year ago.
The data for the Q2 survey was collected by Chicago-based FPL Associates on behalf of The Roundtable.
View original content to download multimedia: http://www.prnewswire.com/news-releases/commercial-real-estate-executives-report-improved-current-markets-and-caution-ahead-301304521.html
SOURCE The Real Estate Roundtable