Uncertainty About Post-Election Policies Tempers Outlook for Commercial Real Estate
06 Nov, 2012
Uncertainty over how the national elections will impact the next Presidential Administration’s approach to domestic economic policies, along with a host of global challenges, tempers commercial real estate executives’ market outlook for the remainder of 2012, according to the Q4 Sentiment Index released by The Real Estate Roundtable. The group consists of publicly held and privately owned real estate groups. Their portfolios contain more than 5 billion square feet of office, retail and industrial properties, as well as other real estate assets.
The Sentiment Index, conducted by FPL Advisory Group, captures the perspectives of senior real estate executives, including CEOs, presidents, board members, and other executives from a broad set of industry sectors including owners and asset managers, financial services firms and operators.
The overall index stands at 65, up two points from Q3 2012 and six points compared to Q4 2011. This index indicates respondents see the commercial real estate industry on a generally favorable incline and expect slightly improved market conditions during 2013.
“In the wake of the Presidential and Congressional elections, industry leaders await how the results will translate into public policies that need to quickly address the nation’s economic woes, respond to potential slowdowns in Europe and Asia and generate economic growth in commercial real estate markets outside core ‘gateway’ areas,” says Jeffrey DeBoer, president and CEO, Real Estate Roundtable. “With our economy perched on a fiscal cliff, there is a state of high expectation in the business community, which is reflected in the relatively flat Q4 Sentiment Index when compared to the previous quarter.”
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