{"id":1004755525,"date":"2025-04-24T22:09:48","date_gmt":"2025-04-25T06:09:48","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004755525"},"modified":"2025-05-01T05:29:31","modified_gmt":"2025-05-01T13:29:31","slug":"sentiment-takes-deep-hit-amid-policy-turbulence-crefc","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sentiment-takes-deep-hit-amid-policy-turbulence-crefc\/","title":{"rendered":"Sentiment Takes Deep Dive Amid Policy Turbulence: CREFC"},"content":{"rendered":"\n

What a difference a quarter makes. Following a record high of 126.6 at the end of the fourth quarter<\/a>, the CRE Finance Council\u2019s Board of Governors Sentiment Index<\/a> has plummeted to 87.9\u2014a fall of 30.5 percent.<\/p>\n\n\n\n

This was the second-largest drop in the index\u2019s history, and was surpassed only by the pandemic\u2019s onset in the first quarter of 2020. Specifically, the decline brings the index below its baseline of 100 for the first time since the pandemic era.<\/p>\n\n\n\n

The survey on which the index is based, CREFC said, \u201ccaptured a dramatic shift in market sentiment that coincided with President Trump’s \u2018Liberation Day\u2019 tariff announcements on April 2.\u201d The survey was conducted from March 31 to April 7.<\/p>\n\n\n\n

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This is the BOG Index’s sharpest drop since early 2020, which coincided with the debut of the coronavirus pandemic. Chart courtesy of CREFC<\/em><\/figcaption><\/figure>\n\n\n\n
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The group\u2019s statement added, \u201cThe precipitous decline reflects growing concerns over economic uncertainty triggered in large part by recent trade policies that have led to heightened market volatility.\u201d<\/p>\n\n\n\n

In a prepared statement, CREFC President & CEO Lisa Pendergast commented, \u201cThe dramatic drop in our Sentiment Index clearly signals concern, but beneath the headline numbers we see pockets of cautious optimism, particularly regarding how lower interest rates might finally break the transaction logjam that has persisted through much of 2024.\u201d<\/p>\n\n\n

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Asked “How will the U.S. economy perform over the next 12 months as compared to the preceding 12 months?”, respondents signaled a sharp U-turn, with 80 percent expecting worse conditions.
Chart courtesy of CREFC<\/em><\/figcaption><\/figure><\/div>\n\n\n

Beyond the single metric of the Sentiment Index, CREFC noted that 80 percent of survey respondents expect worse economic conditions over the next 12 months, versus only 12 percent last quarter. And just 7 percent expect improvement, compared with 42 percent in the previous survey.<\/p>\n\n\n\n

Other highlights from the survey include:<\/p>\n\n\n\n