After more than a year and a half, the NAIOP CRE Sentiment Index once again rose above 50% in the organization’s most recent survey.
This increased sense of optimism indicates respondents expect improved conditions in the CRE space over the next 12 months, NAIOP says. Respondents indicated they have a positive outlook for every Index component except construction costs, which are expected to rise next year.
Image credit: NAIOP CRE Sentiment Index Report, Spring 2024
This marks a major U-turn from the September 2023 Index, which was negative for virtually all components, and the renewed confidence should be a boost for real estate asset management.
Additionally, NAIOP says, respondents expect demand for commercial real estate to improve slightly in the next 12 months, spurred by positive outlooks on occupancy rates and effective rates.
Image credit: NAIOP CRE Sentiment Index Report, Spring 2024
