The nation’s commercial real estate sector may see business prospects getting worse before they get better within the next year.
That is one of the take-aways of a NAIOP CRE Sentiment Index looking at overall conditions as of late September. The current index has a reading of 47, down significantly from where things stood earlier this spring. Last fall, with respondents indicating a more buoyant mood, the index had a 56 reading.
The NAIOP CRE Sentiment Index is designed to both get a feel for where things in the industry currently stand, while also forecasting where things are likely to be in the next year.
The survey did reveal some latent optimism regarding individual projects. In a statement, Marc Selvitelli, chief executive officer of NAIOP, noted that “uncertainty with respect to the interest rates and inflation certainly contribute to the current index.”
Selvitelli added: “However, we do see signs of longterm strength in our industry.”
By Garry Boulard
