In recent years, the commercial real estate industry has faced numerous challenges on both health and economic fronts. As a result, there have been significant fluctuations in sentiment among respondents of the RCLCO Investment Survey.
However, according to the latest release of their Current Real Estate Market Survey in late December 2023, there is a more positive outlook for the future. The survey write-up states that many respondents predict an improvement in real estate markets over the next six to 12 months.
Key takeaways from these survey results include:
– A relatively flat Real Estate Market Sentiment Index (RMI) measured on a scale of 100 points.
– Respondents anticipate an increase in RMI by approximately 30 points within one year.
– While some believe we may be currently experiencing or will soon enter into a recession, others are optimistic that it can be avoided altogether.
– Downturns are expected across various asset types but with potential for recovery within certain sectors such as self-storage and industrial properties.
– Economic sentiments vary regarding interest rates and inflation rates but overall show cautious optimism towards capital flows into real estate.
Compared to previous mid-year results from this same survey, opinions have shifted towards greater positivity related to capital flows into real estate. These findings demonstrate cautious yet hopeful attitudes towards commercial real estate moving forward.
