Commercial real estate sector “cautiously optimistic”
However, she noted that there was “no shortage of capital” which was a good sign for the market’s development, adding that a slight increase in interest rates would not have much of an impact on the market as it was already very low .
However, she was more relaxed about both the potential impact of the new COVID variant, Omicron, and the ongoing obstacles to the construction sector.
She said confidence that the pandemic could be quickly brought under control with the introduction of the vaccine had decreased from the beginning of the year. 43% of respondents now said it would take two to three years for the market to fully recover from the pandemic, up from 29% in July.
The concern was that COVID could affect business activity again, which in turn would “obviously harm” the hotel and hospitality industry, which is still recovering.
Crocker said, “I don’t think we’re going to reach the level of shutdown we did when the pandemic first hit in March, but I think this creates more uncertainty about employees going back to the office.”