The CRE Finance Council (CREFC) reported a significant increase in its Fourth-Quarter 2023 Board of Governors (BOG) Sentiment Index survey, reaching a score of 109.9 – a notable rise from the previous quarter’s score of 82.7, marking the largest quarterly increase since the survey’s inception and indicating a noteworthy shift in industry sentiment.
According to CREFC, while core questions on topics such as economic optimism, industry sentiment, and financing and liquidity showed positive results overall, additional open-ended responses revealed some concerns among respondents. These included worries about potential rate cuts during an economic slowdown, challenges facing the multifamily sector,and uncertainties surrounding financing and liquidity. Other concerns mentioned were increased inflation risks,dampened GDP growth rates,and specific issues within certain sectors like oversupply in multifamily properties or stagnation in office spaces.
Lisa Pendergast,the executive director at CREFC,stated that this significant rise in the Sentiment Index reflects cautious optimism within the CRE finance industry.She also noted that despite navigating through uncertain macroeconomic conditions and sector-specific challenges,the overall sentiment demonstrates confidenceinthe market’s resilienceand adaptability.This serves asa testamenttothe robustnessofthecreindustryin adapting to evolving conditions.
The article “CREFC Sentiment Index Registers Sharp Upturn from Prior Quarter” was originally published on Connect Commercial Real Estate.
