{"id":1004698828,"date":"2024-01-22T11:47:19","date_gmt":"2024-01-22T19:47:19","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004698828"},"modified":"2024-01-26T05:42:20","modified_gmt":"2024-01-26T13:42:20","slug":"crefc-survey-points-to-notable-shift-in-industry-sentiment","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/crefc-survey-points-to-notable-shift-in-industry-sentiment\/","title":{"rendered":"Why CREFC Survey Says Things Are Looking Up"},"content":{"rendered":"
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Lisa Pendergast, Executive Director, CREFC.
Image courtesy of CREFC<\/em><\/figcaption><\/figure><\/div>\n\n\n

The latest Board of Governors Sentiment Index from the CRE Finance Council indicates a notable shift in industry sentiment, while marking the largest quarterly increase since the survey’s inception.<\/p>\n\n\n\n

In terms of the exact survey numbers, the jump was from 82.7 in the third quarter to 109.9 in the fourth, or a 33 percent increase in the Sentiment Index.<\/p>\n\n\n\n

This significant rise underscores a cautiously optimistic outlook in the CRE finance industry, according to Lisa Pendergast, executive director of CREFC. She added in a prepared statement that the overall sentiment reflects confidence in the resilience and adaptability of the market as we are navigating through a landscape of economic uncertainties and sector-specific challenges, demonstrating the industry’s robustness in the face of evolving macroeconomic conditions.<\/p>\n\n\n\n

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READ ALSO<\/strong>: Financial Outlook for CRE<\/a><\/p>\n\n\n\n

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The survey was administered between Dec. 18, 2023, and Jan. 3, 2024. According to CREFC, the index serves as a reliable barometer of market conditions and outlook as perceived by senior members of the industry.<\/p>\n\n\n\n

\"\"\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
CREFC Board of Governors Sentiment Index.
Chart courtesy of CREFC<\/em><\/figcaption><\/figure>\n\n\n\n

The survey\u2019s highlights<\/a> cover a wide range of issues facing the CRE financing community.<\/p>\n\n\n\n

\u2022  There was a sharp increase in positive outlook for the U.S. economy over the coming 12 months, with 54 percent of respondents anticipating better performance, versus only 7 percent in the previous quarter.<\/p>\n\n\n\n

\u2022  Views on the effects of federal government actions and mortgage\/cap rates on CRE finance\u2013related businesses tilted toward neutral or more positive perceptions.<\/p>\n\n\n\n

\u2022  Expectations improved markedly for CRE fundamentals, transaction activity and investor demand for CRE assets, including multifamily.<\/p>\n\n\n\n

\u2022  Survey participants expect a significant increase in borrower demand for financing and liquidity in the CRE debt capital markets.<\/p>\n\n\n\n

\u2022  The survey found a significant increase in positive sentiment toward CMBS and CRE CLO demand\/spreads.<\/p>\n\n\n\n

\u2022  In the third quarter, 58 percent of the BoG held a negative overall sentiment for all CRE finance businesses over the next 12 months, but only 19 percent felt the same in this most recent survey.<\/p>\n\n\n\n

Specific concerns<\/h2>\n\n\n\n

CREFC cautioned that while these core questions from the survey elicit a broadly positive outlook, additional, open-ended responses did reveal some concerns.<\/p>\n\n\n\n

For example, the office sector is expected by a whopping 92 percent of survey respondents to be the worst-performing property class in 2024. There\u2019s also concern that issues in this sector could tarnish the overall CRE market.<\/p>\n\n\n\n

\"\"\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
The office sector is expected by a whopping 92 percent of survey respondents to be the worst-performing property class in 2024.
Chart courtesy of CREFC<\/em><\/figcaption><\/figure>\n\n\n\n

Other, more specific concerns include oversupply of multifamily, followed by growing defaults; \u201cshadow delinquencies\u201d at regional banks; and worries about rate cuts during a slowing economy.<\/p>\n","protected":false},"excerpt":{"rendered":"

Optimism takes a record jump in the organization\u2019s latest poll, but sector-specific concerns remain.<\/p>\n","protected":false},"author":882,"featured_media":1004575204,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21748,21783,23891,21742,21747,21749,51037],"tags":[49138],"class_list":["post-1004698828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-industrial","category-investment","category-national","category-latest","category-office","category-retail","category-trends","tag-cre-finance-council"],"acf":[],"yoast_head":"\nWhy CREFC Survey Says Things Are Looking Up - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"The latest Board of Governors Sentiment Index from the CRE Finance Council indicates a notable positive shift in industry sentiment.\" \/>\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\/crefc-survey-points-to-notable-shift-in-industry-sentiment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why CREFC Survey Says Things Are Looking Up\" \/>\n<meta property=\"og:description\" content=\"The latest Board of Governors Sentiment Index from the CRE Finance Council indicates a notable positive shift in industry sentiment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/crefc-survey-points-to-notable-shift-in-industry-sentiment\/\" \/>\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=\"2024-01-22T19:47:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-26T13:42:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/04\/PendergastLisa-57733-2469.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\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\/crefc-survey-points-to-notable-shift-in-industry-sentiment\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/crefc-survey-points-to-notable-shift-in-industry-sentiment\/\",\"name\":\"Why CREFC Survey Says Things Are Looking Up - 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