Commercial real estate executives see "balanced and stable" market conditions despite growing concerns the market could be nearing the end of its current cycle, the Real Estate Roundtable reported. The Roundtable's third quarter Economic Sentiment Index registered at 52, up one point increase from the second quarter. The current-conditions index score increased four points from the previous quarter to 56, up 5 points from a year ago. "As we move into the second half of the year, we continue to see robust markets, with debt and equity available and asset values strong," said Roundtable CEO and president Jeffrey DeBoer. "The commercial real estate industry remains confident for the remainder of 2018." The report said the positive snapshot of current commercial real estate markets reflects a general absorption of recent interest rate increases and overall economic stimulation from tax reform. But looking ahead, there is growing sentiment the industry is nearing the end of its current cycle, the report said. The future conditions index score, 49, is seven points below the current conditions index. Most respondents suggested asset values have reached their peak for many property types, especially in major gateway cities.
- By Michael Tucker