Commercial real estate executives remain cautiously optimistic about property markets, despite challenges such as high interest rates and liquidity concerns. According to The Real Estate Roundtable’s Q2 2024 Sentiment Index, which measures senior executives’ confidence and expectations in the commercial real estate market environment, the overall score remained unchanged at 61 from the previous quarter.
The Current Sentiment Index saw a two-point increase to 55 in Q2 compared to Q1. However, there was a four-point decrease in the Future Index with a score of 66. Any score above 50 is considered positive.
A majority (66%) of survey participants expect general market conditions to improve within one year while only 11% anticipate them being somewhat worse than they are now. Additionally, nearly half (45%) believe that current conditions are better than they were at this time last year.
Data for this survey was collected by Chicago-based Ferguson Partners on behalf of The Roundtable during April.
Overall, these findings suggest that commercial real estate executives have tempered optimism for future growth due to ongoing uncertainties surrounding asset values and capital availability.
