{"id":1004670846,"date":"2023-07-05T04:12:43","date_gmt":"2023-07-05T12:12:43","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004670846"},"modified":"2026-04-06T00:45:47","modified_gmt":"2026-04-06T08:45:47","slug":"real-estate-market-sentiment-improves","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/","title":{"rendered":"Real Estate Market Sentiment Improves"},"content":{"rendered":"

\u201cBetter, but still not good<\/em>\u201d is how RCLCO describes their mid-year National Real Estate Market Index (RMI), the product of the company\u2019s latest Sentiment Survey<\/a>.<\/p>\n

In the past six months, the RMI has risen by 10.7 points, from a record-low 8.3 points at year-end 2022 to 19.0 now, yet the index remains in perilous territory. An RMI below 40 (on a scale of 0 to 100 points) \u201cis typically consistent with a period of real estate market distress\/recession,\u201d RCLCO says.<\/p>\n

\"The<\/a>

RCLCO National Real Estate Market Index. Chart courtesy of RCLCO<\/em><\/p><\/div>\n

Over the dozen years that the RMI has tracked real estate market conditions in the U.S., the past three years have been especially volatile<\/a>, what with the pandemic, war in Ukraine and recent rate hikes by the Fed.<\/p>\n

\n

READ ALSO<\/strong>: Barkham Predicts Mild Recession, Rapid Recovery<\/a><\/p>\n

\n

Although the survey\u2019s respondents, who are primarily investors or developers, predict continued improvement in the real estate market, they also see it remaining in distress for a further six to 12 months.<\/p>\n

That\u2019s against a backdrop of recession concerns. An overwhelming majority of those surveyed (84 percent) foresee a recession in the next two years, and nearly half (47 percent) predict one within 12 months.<\/p>\n

\"When<\/a>

Recession forecast. Chart courtesy of RCLCO<\/em><\/p><\/div>\n

\u201cOne potential silver lining,\u201d RCLCO reports, \u201cis that the majority of respondents anticipate that the looming recession will likely be of shallow to moderate depth,\u201d or at most negative 2 percent of GDP.<\/p>\n

Nearly half of respondents (47 percent) expect inflation to start to decrease.<\/p>\n

Downturn’s impact on CRE sectors<\/h2>\n

Over the next 12 months, survey respondents anticipate that most CRE sectors will be in some degree of downturn, \u201cthough some niche sectors such as self storage, seniors housing, grocery\/necessity retail and hospitality are anticipated to have more resilience.\u201d<\/p>\n

Unsurprisingly perhaps, the office sector is the one that respondents believe will see the largest peak-to-trough asset value declines, averaging an estimated 16.3 percent below peak. Retail was second on this unwelcome list, at 8.3 percent, followed by hotels (7.0 percent), multifamily (6.5 percent), industrial (4.0 percent) and self storage (3.6 percent).<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the slight increase in optimism, RCLCO\u2019s latest survey points to an impending recession. <\/p>\n","protected":false},"author":882,"featured_media":1004670867,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,23891,21742,21747,21749,51037],"tags":[36905],"class_list":["post-1004670846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-national","category-latest","category-office","category-retail","category-trends","tag-rclco"],"acf":[],"yoast_head":"\nReal Estate Market Sentiment Improves - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Despite a slight increase in optimism, RCLCO\u2019s latest real estate market sentiment survey points to an impending recession.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Real Estate Market Sentiment Improves\" \/>\n<meta property=\"og:description\" content=\"Despite a slight increase in optimism, RCLCO\u2019s latest real estate market sentiment survey points to an impending recession.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-05T12:12:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-06T08:45:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/07\/Recession-forecast.png\" \/>\n\t<meta property=\"og:image:width\" content=\"719\" \/>\n\t<meta property=\"og:image:height\" content=\"384\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/\",\"name\":\"Real Estate Market Sentiment Improves - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/07\/Recession-forecast.png\",\"datePublished\":\"2023-07-05T12:12:43+00:00\",\"dateModified\":\"2026-04-06T08:45:47+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"Despite a slight increase in optimism, RCLCO\u2019s latest real estate market sentiment survey points to an impending recession.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/real-estate-market-sentiment-improves\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/07\/Recession-forecast.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/07\/Recession-forecast.png\",\"width\":719,\"height\":384,\"caption\":\"Recession forecast. 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