Survey: Top Execs Bullish On Real Estate, Unsure About Broader Economy
Top real estate execs are guardedly optimistic on US real estate, but wary of how developments in the broader economy might impact the sector, a new survey reveals.
Polling executives in charge of over $700B in real estate investments, a NAREIT-headed group asked respondents to rate their 2016 outlook on a variety of topics on a numerical range from no confidence (0) absolute confidence (100).
Overall, the executives weren’t quite as optimistic as many economists in terms of job growth in 2016, but remained confident US real estate would remain a safe harbor in an uncertain global economy. (The overall sentiment is roughly in line with a report released by CBRE last month.)
Here are some other highlights from the survey:
- Respondents were wobbly on the global economic outlook, with a 45.3 “Real Confidence” level.
- Respondents were almost positive rates will rise again in 2016, with an 80.4 Real Confidence score.
- Increased job growth scored only a 49.2...
- ...although most respondents predicted wages would rise as the economy reaches full employment, with a 61.9 Real Confidence score.
- At 75, respondents are confidentMillennial-targeted factors like mobile connectivity, telecommuting and walkability will have a big influence on real estate decisions in 2016. [WPJ]