Tag: Quarterly Sentiment Index

Sentiment Index Shows Market in Holding Pattern as Capital Conditions Improve but Transactions Lag

Posted on by abigail_grenadier

The Real Estate Roundtable (RER) this week released its Q2 2026 Sentiment Index, which registered an overall score of 63, down three points from the previous quarter. The survey shows a CRE market with improving capital conditions and steady fundamentals, but one still constrained by limited transaction activity, pricing uncertainty, and uneven momentum across sectors. (Full Q2 Report)

CRE Market Conditions

  • The Current Index registered 61, down five points from Q1 2026, while the Future Index posted a score of 64, down three points from the previous quarter. (RER News Release, May 22)
  • Compared to one year ago, sentiment has improved: current conditions are up 11 points, future conditions are up six points, and overall conditions are up nine points. (Full Q2 Report)

Topline Findings

  • The Q2 Sentiment Index’s results reflect a market caught in stalemate, where capital is abundant, debt is open, and fundamentals are holding, yet transactions remain stuck behind a wide bid-ask spread. Sellers are refinancing rather than listing, geopolitical shocks have delayed an otherwise visible recovery, and a K-shaped dynamic is widening the gap between well-capitalized players and those running short on equity. The mood is patient, not pessimistic: a ‘decaffeinated’ recovery that participants believe will accelerate once pricing clarity returns.
  • Beneath the headline numbers, performance is increasingly defined by where firms are and what they own. Top-quartile markets and assets are pulling decisively away from the rest, with industrial, lodging, data centers, and high-quality retail running hot, while multifamily continues to absorb its supply overhang, and office remains sharply bifurcated between trophy assets and everything else. Across every sector, AI is emerging as both a demand driver and an operational force multiplier, reshaping where capital flows and how participants underwrite the next cycle.
  • A majority (53%) of respondents believe asset values are relatively unchanged compared to a year ago, while 32% feel they are higher and 15% think values have declined. Looking ahead, the outlook is overall optimistic: 54% expect asset prices to rise over the next year, 37% believe asset values will remain stable, and only 9% anticipate that values will decrease.
  • Perceptions on equity capital are split, with 24% believing availability is worse compared to a year ago, 33% thinking it is better, and 43% feeling it is the same. On the other hand, sentiment around debt capital is positive, as 69% said the availability of debt capital has improved from last year. Looking forward, 51% of respondents believe that equity capital availability will be better in one year, and 31% believe debt capital availability will be better.

Roundtable View

  • “Commercial real estate is on stronger footing than it was a year ago, but the recovery is still uneven,” said Jeffrey DeBoer, President and CEO of The Real Estate Roundtable. “Debt is available, values are stabilizing, and fundamentals are holding in many sectors. But transactions remain limited, equity capital is still cautious, and performance varies sharply by market and asset class.” (RER News Release, May 22)
  • “Now is the time for policies that encourage investment and capital formation—not new barriers that make it harder to build, finance, and modernize the real estate that supports housing, jobs, communities, and economic growth,” DeBoer added.

Data for the Q2 survey was gathered in April by Chicago-based Ferguson Partners on RER’s behalf.

The Real Estate Roundtable Q2 2026 Sentiment Index Shows Market in Holding Pattern as Capital Improves but Transactions Lag

Posted on by abigail_grenadier

(WASHINGTON, D.C.) — The Real Estate Roundtable (RER) today released its Q2 2026 Sentiment Index, which registered an overall score of 63, down three points from the previous quarter. The survey shows a CRE market with improving capital conditions and steady fundamentals, but one still constrained by limited transaction activity, pricing uncertainty, and uneven momentum across sectors.

Compared to one year ago, sentiments of current conditions are up by 11 points, perceptions of future conditions are up by 6 points, and overall conditions are up by 9 points.

“Commercial real estate is on stronger footing than it was a year ago, but the recovery is still uneven,” said Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable. “Debt is available, values are stabilizing, and fundamentals are holding in many sectors. But transactions remain limited, equity capital is still cautious, and performance varies sharply by market and asset class.”

“Now is the time for policies that encourage investment and capital formation—not new barriers that make it harder to build, finance, and modernize the real estate that supports housing, jobs, communities, and economic growth,” DeBoer added.

The Q2 Sentiment Index topline findings include:

  • The Q2 2026 Real Estate Roundtable Sentiment Index registered an overall score of 63, a decrease of 3 points from the previous quarter. The Current Index registered 61, a 5-point decrease from Q1 2026. The Future Index posted a score of 64 points, a 3-point decrease from the previous quarter, reflecting a market caught in stalemate, where capital is abundant, debt is open, and fundamentals are holding, yet transactions remain stuck behind a wide bid-ask spread. Sellers are refinancing rather than listing, geopolitical shocks have delayed an otherwise visible recovery, and a K-shaped dynamic is widening the gap between well-capitalized players and those running short on equity. The mood is patient, not pessimistic: a ‘decaffeinated’ recovery that participants believe will accelerate once pricing clarity returns.
  • Beneath the headline numbers, performance is increasingly defined by where you are and what you own. Top-quartile markets and assets are pulling decisively away from the rest, with industrial, lodging, data centers, and high-quality retail running hot, while multifamily continues to absorb its supply overhang, and office remains sharply bifurcated between trophy assets and everything else. Across every sector, AI is emerging as both a demand driver and an operational force multiplier, reshaping where capital flows and how participants underwrite the next cycle.
  • A majority (53%) of respondents believe asset values are relatively unchanged compared to a year ago, while 32% feel they are higher and 15% think values have declined. Looking ahead, the outlook is overall optimistic: 54% expect asset prices to rise over the next year, 37% believe asset values will remain stable, and only 9% anticipate that values will decrease.
  • Perceptions on equity capital are split, with 24% believing availability is worse compared to a year ago, 33% thinking it is better, and 43% feeling it is the same. On the other hand, sentiment around debt capital is positive, as 69% said the availability of debt capital has improved from last year. Looking forward, 51% of respondents believe that equity capital availability will be better in one year, and 31% believe debt capital availability will be better.

Sample responses from participants in the Sentiment Index’s Q2 survey include:

“If I had to sum it up in one word, I would say ‘stalemate’. Two years ago, I would have said ‘bear market’–not distress, but some stress.”

“It’s a decaffeinated capital markets recovery. It’s there fundamentally, but it’s not allowing for full transactions. It’s a rising tide, but there are certainly some ships with holes in their hulls.”

“The top quartile of U.S. markets in each property type are showing a lot more strength than the other quartiles. There’s more differentiation in performance across markets, property types, and within sectors.”

“AI is providing tremendous support to the economy. We feel strongly about digital companies investing in hard assets such as data centers, energy generation, storage, and transmission.”

Data for the Q2 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in April. See the full Q2 report.

The Real Estate Roundtable (RER) brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

NEWS: Commercial Real Estate Sentiment Steady in Q1 2026 as Debt Availability Improves

Posted on by abigail_grenadier

(WASHINGTON, D.C.) — The Real Estate Roundtable (RER) today released its First Quarter 2026 Sentiment Index, a quarterly measure of confidence among senior commercial real estate (CRE) executives. The overall index registered 66, down one point from Q4 2025, as respondents described a market in the early stages of a tentative, uneven recovery. Tariffs and interest-rate uncertainty continue to widen buyer-seller spreads and slow price discovery.

The Current Index rose two points to 66, while the Future Index decreased two points to 67, reflecting cautious optimism for improved conditions in 2026 despite ongoing volatility.

“This quarter’s survey shows the market is stabilizing, with improving debt availability and growing optimism about the year ahead—even as uncertainty continues to keep transaction volume below potential,” said Jeffrey DeBoer, RER President and CEO.

“The industry is positioned for a more constructive 2026, but sustained momentum will depend on a stable policy environment,” DeBoer added. “That stability supports investment decisions that drive jobs, housing, and economic activity in communities nationwide.”

The Q1 Sentiment Index topline findings include:

  • The Q1 2026 Real Estate Roundtable Sentiment Index registered an overall score of 66, a decrease of one point from the previous quarter. The Current Index registered 66, a two-point increase over Q4 2025. The Future Index posted a score of 67 points, a decrease of two points from the previous quarter, reflecting a prevailing sentiment that the market is in the early stages of a tentative, uneven recovery. Political, tariff, and interest rate uncertainty is contributing to wide spreads between buyers and sellers. Amid the uncertainty around pricing clarity and geopolitical stability, participants are cautiously optimistic for an improved 2026.
  • Although perspectives vary by asset class, overall market sentiment trends positive. Less than 10% of respondents believe that general market conditions are worse than this time last year, and 63% of respondents believe that general market conditions are better than this time last year. Furthermore, 64% of participants expect general market conditions to show improvement one year from now. Leaders reported strength in data centers and industrial, while returns in the multifamily and office sectors remain heavily location-dependent.
  • Forty-three percent (43%) of respondents believe asset values are roughly unchanged compared to a year ago. Nearly half of participants are seeing green shoots, as 48% believe asset prices have increased while only 9% believe they have declined. Looking ahead, the outlook is optimistic: 67% expect asset prices to rise over the next year, 30% believe asset values will remain stable, and only 3% anticipate a slight decline.
  • Perceptions on the availability of equity capital are muted relative to last quarter, although about four in ten respondents (42%) still believe equity availability is better compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 78% said the availability of debt capital has improved from last year. Looking forward, 65% of respondents believe that equity capital availability will be better in one year, and 49% believe debt capital availability will be better.

Sample responses from participants in the Sentiment Index’s Q1 survey include:

“The market is stagnant but promising; there’s a lot of pent-up demand and capital that needs to be deployed. Banks that were previously on the sidelines are looking to replenish balance sheets.”

“The real estate sector is in the early stages of a new cycle: Debt and equity are open, people have accepted the higher-for-longer interest rate environment, and now the focus is on relative value and income across all asset classes.”

“The real estate market is largely still locked up. People need certainty; when certainty returns, transaction volume will skyrocket.”

Data for the Q1 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in January. See the full Q1 report.

The Real Estate Roundtable (RER) brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

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Commercial Real Estate Sentiment Steady in Q1 2026 as Debt Availability Improves

Posted on by abigail_grenadier

The Real Estate Roundtable (RER) today released its First Quarter 2026 Sentiment Index, a quarterly measure of confidence among senior commercial real estate (CRE) executives. The overall index registered 66, down one point from Q4 2025, as respondents described a market in the early stages of a tentative, uneven recovery. Tariffs and interest-rate uncertainty continue to widen buyer-seller spreads and slow price discovery. (Q1 Report, News Release, Feb. 20)

Topline Findings

The Q1 Sentiment Index topline findings include:

  • The Q1 2026 Real Estate Roundtable Sentiment Index registered an overall score of 66, a decrease of one point from the previous quarter. The Current Index registered 66, a two-point increase over Q4 2025. The Future Index posted a score of 67 points, a decrease of two points from the previous quarter, reflecting a prevailing sentiment that the market is in the early stages of a tentative, uneven recovery. Political, tariff, and interest rate uncertainty is contributing to wide spreads between buyers and sellers. Amid the uncertainty around pricing clarity and geopolitical stability, participants are cautiously optimistic for an improved 2026.
  • Although perspectives vary by asset class, overall market sentiment trends positive. Less than 10% of respondents believe that general market conditions are worse than this time last year, and 63% believe that general market conditions are better than this time last year. Furthermore, 64% expect general market conditions to show improvement one year from now. Leaders reported strength in data centers and industrial, while returns in the multifamily and office sectors remain heavily location-dependent.
  • Forty-three percent (43%) of respondents believe asset values are roughly unchanged compared to a year ago. Nearly half of participants are seeing green shoots, as 48% believe asset prices have increased while only 9% believe they have declined. Looking ahead, the outlook is optimistic: 67% expect asset prices to rise over the next year, 30% believe asset values will remain stable, and only 3% anticipate a slight decline.
  • Perceptions of equity capital availability are muted relative to last quarter, although about four in 10 respondents (42%) still believe equity availability is better than a year ago. On the other hand, sentiment around debt capital has risen significantly, with 78% saying the availability of debt capital has improved from last year. Looking ahead, 65% believe equity capital availability will be better in one year, and 49% believe debt capital availability will be better.

Roundtable View

  • RER President and CEO Jeffrey DeBoer said, “This quarter’s survey shows the market is stabilizing, with improving debt availability and growing optimism about the year ahead—even as uncertainty continues to keep transaction volume below potential.”
  • “The industry is positioned for a more constructive 2026, but sustained momentum will depend on a stable policy environment,” DeBoer added. “That stability supports investment decisions that drive jobs, housing, and economic activity in communities nationwide.”

Data for the Q1 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in January. See the full Q1 report.

NEWS: Commercial Real Estate Confidence Holds Steady as Market Stabilizes, Q4 Sentiment Index Shows

Posted on by abigail_grenadier

(WASHINGTON, D.C.) — The Real Estate Roundtable’s (RER) Q4 2025 Sentiment Index registered an overall score of 67, equivalent to the prior quarter, reflecting that commercial real estate executives’ sentiment has shifted from caution toward guarded optimism as markets stabilize, transaction activity resumes, and expectations build for easing interest rates in 2026.

The Current Index rose one point to 64, while the Future Index dipped slightly to 69, together indicating confidence that the worst disruptions of recent years have passed—even as policy uncertainty and uneven capital access continue to shape near-term decision-making.

Industry leaders credited easing rate pressures and increased market activity for boosting optimism, despite tariffs and shifting policy signals posing persistent challenges.

“Real estate executives see encouraging momentum,” said Jeffrey DeBoer, RER President and CEO. “Roundtable members are reporting steady improvement and renewed confidence across sectors. Despite improvements, tariffs continue to drive up development costs and complicate business planning. Moreover, the record-long government shutdown is disrupting infrastructure and construction permitting, and access to current economic data that companies rely on to plan. Clear, consistent, and coordinated policies from Washington are essential to unlock capital and support long-term economic growth in communities nationwide.”

The Q4 Sentiment Index topline findings include:

  • The Q4 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, equivalent to the previous quarter. The Current Index registered a score of 64, a 1-point increase over Q3 2025. The Future Index posted a score of 69 points, a decrease of 2 points from the previous quarter, reflecting sentiment that the market has largely stabilized and is now transitioning from caution to guarded optimism. Many participants anticipate stronger transaction activity in 2026 as interest rates ease and confidence builds, yet acknowledge that political and policy uncertainty continue to temper near-term enthusiasm.
  • Although perspectives vary by asset class, overall market sentiment remains positive. Only 13% of respondents believe that general market conditions are worse than this time last year, while 63% believe that general market conditions are better than this time last year. More than two-thirds (70%) of Q4 survey participants expect general market conditions to show improvement one year from now. Leaders reported continued strength in residential sectors, alongside steady improvement in retail and hospitality. Office remains the most challenged asset class, though signs of stabilization are emerging in top-tier markets.
  • Forty-three percent (43%) of respondents believe asset values are roughly unchanged compared to a year ago. A large minority of participants see green shoots, with 42% believing asset prices have increased and only 15% believing they have declined. Looking ahead, the outlook is optimistic: 72% expect asset prices to rise over the next year, 24% believe asset values will remain stable, and only 4% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last quarter are muted, although nearly half (48%) of respondents still believe equity availability is better compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 78% said the availability of debt capital has improved from last year. Looking forward, 64% of respondents believe that equity capital availability will be better in one year and 56% believe debt capital availability will be better.

Sample responses from participants in the Sentiment Index’s Q4 survey include:

“Market conditions have strengthened, and real estate has benefited from overall market optimism, driven by expectations of continued rate cuts on the short end of the curve and confidence that the economy will avoid a recession.”

“Equity is coming in, but real estate has lots of competition among infrastructure, private markets, etc.”

“Tariffs have been a disaster for our industry, not only because the cost of materials is higher, but also because of the uncertainty they create which significantly hampers the ability to make decisions.”

Data for the Q4 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in October. See the full Q4 report.

The Real Estate Roundtable (RER) brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

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Commercial Real Estate Confidence Holds Steady as Market Stabilizes, Q4 Sentiment Index Shows

Posted on by abigail_grenadier

The Real Estate Roundtable’s (RER) Q4 2025 Sentiment Index registered an overall score of 67, equivalent to the prior quarter, reflecting that commercial real estate executives’ sentiment has shifted from caution toward guarded optimism as markets stabilize, transaction activity resumes, and expectations build for easing interest rates in 2026.

Topline Findings

The Q4 Sentiment Index topline findings include:

  • The Q4 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, equivalent to the previous quarter. The Current Index registered a score of 64, a 1-point increase from Q3 2025. The Future Index posted a score of 69 points, a 2-point decrease from the previous quarter, reflecting sentiment that the market has largely stabilized and is now transitioning from caution to guarded optimism. Many participants anticipate stronger transaction activity in 2026 as interest rates ease and confidence builds, yet acknowledge that political and policy uncertainty continue to temper near-term enthusiasm.
  • Although perspectives vary by asset class, overall market sentiment remains positive. Only 13% of respondents believe that general market conditions are worse than this time last year, while 63% believe that general market conditions are better than this time last year. More than two-thirds (70%) of Q4 survey participants expect general market conditions to show improvement one year from now. Leaders reported continued strength in residential sectors, alongside steady improvement in retail and hospitality. Office remains the most challenged asset class, though signs of stabilization are emerging in top-tier markets.
  • 43% of respondents believe asset values are roughly unchanged compared to a year ago. A large minority of participants see green shoots, with 42% believing asset prices have increased and only 15% believing they have declined. Looking ahead, the outlook is optimistic: 72% expect asset prices to rise over the next year, 24% believe asset values will remain stable, and only 4% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last quarter are muted, although nearly half (48%) of respondents still believe equity availability is better compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 78% said the availability of debt capital has improved from last year. Looking forward, 64% of respondents believe that equity capital availability will be better in one year and 56% believe debt capital availability will be better.

Roundtable View

  • RER President and CEO Jeffrey DeBoer said, “Real estate executives see encouraging momentum. Roundtable members are reporting steady improvement and renewed confidence across sectors. Despite improvements, tariffs continue to drive up development costs and complicate business planning. Moreover, the record-long government shutdown is disrupting infrastructure and construction permitting, and access to current economic data that companies rely on to plan”
  • He added, “Clear, consistent, and coordinated policies from Washington are essential to unlock capital and support long-term economic growth in communities nationwide.”

Data for the Q4 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in October. See the full Q4 report.

Stabilizing Market Conditions Drive Optimism in Q3 Sentiment Index

Posted on by abigail_grenadier

The Real Estate Roundtable’s Q3 2025 Sentiment Index shows increased confidence among industry executives as market conditions stabilize and sector-led growth emerges. The overall Index registered a score of 67—up 13 points from Q2—with notable increases in both the Current (63) and Future (71) indices. (Full Report)

Roundtable View

  • RER President and CEO Jeffrey DeBoer said, “Our Q3 Sentiment Index results show that market conditions have continued to stabilize in a meaningful way, supported by improved supply and demand. Commercial real estate executives are increasingly optimistic that the next 12 months will bring continued improvement. That said, certain property types continue to face headwinds, and capital access remains uneven across markets and sectors. Even so, the prevailing sentiment is that stability is returning and opportunities are emerging.” (Press Release, Aug. 14)
  • DeBoer added, “The provisions in the One Big Beautiful Bill Act should help accelerate this momentum—expanding housing supply, revitalizing communities, spurring job-creating investment nationwide, and strengthening the broader economy. Coupled with improving debt capital availability and stabilizing asset values, these policies set the stage for renewed growth. Moving forward, industry leaders and policymakers must continue to work together to promote investment, ensure credit access, and address persistent supply-demand imbalances in housing and other high-need property sectors.” (ConnectCRE, Aug. 14)

Topline Findings

The Q3 Sentiment Index topline findings include:

  • The Q3 2025 Sentiment Index registered an overall score of 67, an increase of 13 points over the previous quarter. The Current Index registered a score of 63, a 13-point increase over Q2 2025. The Future Index posted a score of 71 points, an increase of 13 points over the previous quarter, reflecting sentiment that operating conditions have largely stabilized. Occupancy and demand are holding, and values appear to have bottomed. Participants expect modest, sector-led growth, yet acknowledge lingering headwinds for weaker property types.
  • Sentiment around general market conditions has markedly increased since last quarter (Q2). Only 10% of respondents believe that general market conditions are worse than this time last year, and 56% of respondents believe that general market conditions are better than this time last year. Almost three-quarters (73%) of Q3 survey participants expect general market conditions to show improvement one year from now. Multifamily, data centers, and NYC office shine while industrial supply is overbuilt.
  • Half of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 32% believing asset prices have increased and 18% believing they have declined. Looking ahead, the outlook is optimistic: 59% expect asset prices to rise over the next year, 32% believe asset values will remain stable, and only 9% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last year are muted, with 50% of respondents believing equity availability is unchanged compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 65% said the availability of debt capital has improved from last year. Looking forward, 55% of respondents believe that equity capital availability will be better in one year, and 48% believe debt capital availability will be better.

Market Dynamics

  • Survey participants emphasized the sector-specific nature of today’s market, with performance tied closely to location, asset quality, and loan maturity schedules. Sample responses noted that conditions feel “far steadier than we have seen in recent years,” while others highlighted that “quality product will still get funded” despite a “haves and have-nots” equity environment. (ConnectCRE, Sept. 2)
  • The Federal Reserve’s Beige Book released this week, noted that while overall economic momentum remains muted, commercial real estate showed resilience, especially in data center construction.
  • Districts such as Philadelphia, Cleveland, and Chicago reported a surge in development, fueled by the push to deploy AI and select infrastructure projects. The Fed described this trend as a rare bright spot for CRE in an otherwise cautious market, while conditions in other property sectors varied widely. (GlobeSt. Sept. 4)
  • The commercial real estate industry continues to face persistent challenges from a shortage of skilled labor and rising construction costs, underscoring the urgent need for workforce development and training initiatives.
  • Labor Secretary Lori Chavez-DeRemer, joined Punchbowl News Thursday to discuss workforce innovation, calling for more apprenticeship and training programs to address the growing construction labor shortage. (Punchbowl News, Sept. 5)

RER’s Q3 survey was conducted in July by Chicago-based Ferguson Partners. Read the full Q3 report.

Stabilizing Market Conditions Drive Optimism in Q3 Sentiment Index

Posted on by abigail_grenadier

(WASHINGTON, D.C.) — The Real Estate Roundtable’s Q3 2025 Sentiment Index reflects increased confidence among commercial real estate executives as market conditions stabilize and sector-led growth emerges. The Q3 Index posted an overall score of 67, a 13-point increase from the previous quarter, with notable increases in both the Current (63) and Future (71) indices.

RER President and CEO Jeffrey DeBoer said, “Our Q3 Sentiment Index results show that market conditions have continued to stabilize in a meaningful way, supported by improved supply and demand. Commercial real estate executives are increasingly optimistic that the next 12 months will bring continued improvement. That said, certain property types continue to face headwinds, and capital access remains uneven across markets and sectors. Even so, the prevailing sentiment is that stability is returning and opportunities are emerging.”

While challenges remain, industry leaders see meaningful opportunities ahead, particularly in multifamily, data centers, and select office markets.

He added, “The provisions in the One Big Beautiful Bill Act should help accelerate this momentum— expanding housing supply, revitalizing communities, spurring job-creating investment nationwide, and strengthening the broader economy. Coupled with improving debt capital availability and stabilizing asset values, these policies set the stage for renewed growth. Moving forward, industry leaders and policymakers must continue to work together to promote investment, ensure credit access, and address persistent supply-demand imbalances in housing and other high-need property sectors.”

The Q3 Sentiment Index topline findings include:

  • The Q3 2025 Real Estate Roundtable Sentiment Index registered an overall score of 67, an increase of 13 points over the previous quarter. The Current Index registered 63, a 13-point increase over Q2 2025. The Future Index posted a score of 71 points, an increase of 13 points over the previous quarter, reflecting sentiment that operating conditions have largely stabilized: occupancy and demand are holding, and values appear to have bottomed. Participants expect modest, sector-led growth, yet acknowledge lingering headwinds for weaker property types.
  • Sentiment around general market conditions has markedly increased since last quarter (Q2). Only 10% of respondents believe that general market conditions are worse than this time last year, and 56% of respondents believe that general market conditions are better than this time last year. Almost three- quarters (73%) of Q3 survey participants expect general market conditions to show improvement one year from now. Multifamily, data centers, and NYC office shine while industrial supply is overbuilt.
  • Half of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 32% believing asset prices have increased and 18% believing they have declined. Looking ahead, the outlook is optimistic: 59% expect asset prices to rise over the next year, 32% believe asset values will remain stable, and only 9% anticipate a slight decline.
  • Perceptions on the availability of equity capital relative to last year are muted, with 50% of respondents believing equity availability is unchanged compared to a year ago. On the other hand, sentiment around debt capital has risen significantly, as 65% said the availability of debt capital has improved from last year. Looking forward, 55% of respondents believe that equity capital availability will be better in one year and 48% believe debt capital availability will be better.

Survey participants noted that the market is increasingly sector-specific, with performance tied closely to location, asset quality, and loan maturity schedules. Comments highlighted stabilizing fundamentals, renewed deal competition, and a narrowing bid-ask spread in transactions.

Some sample responses from participants in the Sentiment Index’s Q3 survey include:

“The market feels largely stable. There is still uncertainty about what lies ahead, yet conditions are far steadier than we have seen in recent years.”

“Real estate is a local business, and this cycle underlines how unique every market and product type really is. There is no ‘one-size-fits-all’ answer; it all depends on where you are, how favorable your product is, and the date of your loan maturity.”

“Debt is liquid with tight spreads; on the equity side it’s a ‘haves and have-nots’ market. Quality product will still get funded.”

Data for the Q3 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in July. See the full Q3 report.

The Real Estate Roundtable (RER) brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

CRE Executives Signal Increased Caution in Q2 Sentiment Survey

Posted on by abigail_grenadier

Commercial real estate executives report a decline in market confidence this quarter, as policy uncertainty, rising costs, and investor caution cloud the outlook, according to The Real Estate Roundtable’s Q2 2025 Sentiment Index released today.

Roundtable View

  • The quarterly Sentiment Index, measuring executive perceptions of market conditions, asset values, and capital availability, declined to an overall score of 54, down 14 points from last quarter. The Current Conditions Index dropped to 50, reflecting a 15-point decline, while the Future Conditions Index decreased by 12 points, settling at 58.
  • The Overall Index is scored on a scale of 1 to 100 by averaging Current and Future Indices; any score over 50 is viewed as positive.
  • RER President and CEO Jeffrey DeBoer said, “While respondents note early signs of market stabilization and improved transactional discipline, lingering concerns over U.S. trade policies and other economic headwinds are tempering optimism for the remainder of 2025. The office sector remains under pressure, but is experiencing a gradual rebound as return-to-office trends continue to shift closer to pre-pandemic patterns.”
  • He added, “Uncertain tariff policies are driving up construction costs and weighing on long-term investment decisions. At the same time, the Federal Reserve’s decision to hold interest rates steady is slowing capital formation and delaying needed transactions. We need pro-growth economic policies that encourage productive investment, strengthen communities, and promote long-term stability. Extending and making the 2017 Tax Cuts and Jobs Act (TCJA) provisions permanent, along with advancing incentives to address our nation’s housing supply shortage, are crucial to help achieve these goals.”
  • In the May edition of ULI’s Economist Snapshot, RER’s Senior Vice President Clifton E. “Chip” Rodgers Jr. weighed in on how rising tariffs and trade uncertainty are impacting commercial real estate—from delayed development timelines to rising construction costs and reduced foreign investment. (ULI, May 13)

Topline Findings

  • The Q2 2025 Real Estate Roundtable Sentiment Index registered an overall score of 54, a decrease of 14 points from the previous quarter. The Current Index registered at 50, a 15-point decrease compared to Q1 2025. The Future Index posted a score of 58 points, a decrease of 12 points from the previous quarter, reflecting uncertainty around policy direction, rising costs, and execution risk. While market sentiment remains cautious, respondents are seeing early signs of stabilization and improved transactional discipline. Nevertheless, expectations for improvement have softened compared to last year, and many investors are still hesitant to re-engage.
  • Market conditions remain mixed, with general uncertainty, along with sector and geographic bifurcation, driving sentiment. 37% of respondents believe that general market conditions are worse now compared to the same period last year, and 37% of respondents believe that general market conditions are better than this time last year.
  • Close to half (47%) of Q2 survey participants expect general market conditions to show improvement one year from now, while 20% of Q2 participants expect general market conditions to be somewhat worse in a year.
  • Logistics and high-quality multifamily remain bright spots, while hospitality and office—particularly commodity space—continue to face significant challenges. From a geographic standpoint, the Midwest is showing relative resilience, whereas sentiment around the Sunbelt reflects concern over elevated supply and near-term softened demand.
  • 42% of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 22% believing asset prices have increased and 36% believing they have declined. Looking ahead, the outlook is cautious: 38% expect asset prices to remain stable over the next year, while another 38% anticipate a slight decline.
  • Perceptions of equity capital are widely varied, though 34% of respondents believe the availability of equity capital is better than it was a year ago. Sentiment around debt capital has brightened, as 43% said the availability of debt capital has improved from last year. Looking forward, 45% of respondents believe that equity capital availability will be better in one year and 39% believe debt capital availability will be better in one year.

Data for the Q2 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf. Read the full Q2 report here.

Commercial Real Estate Executives Signal Increased Caution in Q2 Sentiment Survey

Posted on by abigail_grenadier

(WASHINGTON, D.C.) — The Real Estate Roundtable (RER) today released its Q2 2025 Sentiment Index, reporting a decrease in confidence in the commercial real estate market environment among industry executives due to policy uncertainty, rising costs, and cautious investor sentiment. The quarterly Sentiment Index, measuring executive perceptions on market conditions, asset values, and capital availability, declined to an overall score of 54, down 14 points from last quarter. The Current Conditions Index dropped to 50, reflecting a 15-point decline, while the Future Conditions Index decreased by 12 points, settling at 58. The Overall Index is scored on a scale of 1 to 100 by averaging Current and Future Indices; any score over 50 is viewed as positive.

RER President and CEO Jeffrey DeBoer said, “While respondents note early signs of market stabilization and improved transactional discipline, lingering concerns over U.S. trade policies and other economic headwinds are tempering optimism for the remainder of 2025. The office sector remains under pressure, but is experiencing a gradual rebound as return-to-office trends continue to shift closer to pre-pandemic patterns.”

He added, “Uncertain tariff policies are driving up construction costs and weighing on long-term investment decisions. At the same time, the Federal Reserve’s decision to hold interest rates steady is slowing capital formation and delaying needed transactions. We need pro-growth economic policies that encourage productive investment, strengthen communities, and promote long-term stability. Extending and making the2017 Tax Cuts and Jobs Act (TCJA) provisions permanent, along with advancing incentives to address our nation’s housing supply shortage, are crucial to help achieve these goals.”

The Q2 Sentiment Index topline findings include:

  • The Q2 2025 Real Estate Roundtable Sentiment Index registered an overall score of 54, a decrease of 14 points from the previous quarter. The Current Index registered at 50, a 15-point decrease compared to Q1 2025. The Future Index posted a score of 58 points, a decrease of 12 points from the previous quarter, reflecting uncertainty around policy direction, rising costs, and execution risk. While market sentiment remains cautious, respondents are seeing early signs of stabilization and improved transactional discipline. Nevertheless, expectations for improvement have softened compared to last year, and many investors remain hesitant to re-engage.
  • Market conditions remain mixed, with general uncertainty, along with sector and geographic bifurcation, driving sentiment. 37% of respondents believe that general market conditions are worse than this time last year, and 37% of respondents believe that general market conditions are better than this time last year. Close to half (47%) of Q2 survey participants expect general market conditions to show improvement one year from now, while 20% of Q2 participants expect general market conditions to be somewhat worse in a year. Logistics and high-quality multifamily remain bright spots, while hospitality and office—particularly commodity space—continue to face significant challenges. From a geographic standpoint, the Midwest is showing relative resilience, whereas sentiment around the Sunbelt reflects concern over elevated supply and near-term softened demand.
  • 42% of respondents believe asset values are roughly unchanged compared to a year ago. The remaining respondents are divided, with 22% believing asset prices have increased and 36% believing they have declined. Looking ahead, the outlook is cautious: 38% expect asset prices to remain stable over the next year, while another 38% anticipate a slight decline.
  • Perceptions of equity capital are widely varied, though 34% of respondents believe the availability of equity capital is better than it was a year ago. Sentiment around debt capital has brightened, as 43% said the availability of debt capital has improved from last year. Looking forward, 45% of respondents believe that equity capital availability will be better in one year and 39% believe debt capital availability will be better in one year.

Some sample responses from participants in the Sentiment Index’s Q2 survey include:

“The one thing that every investor – domestic and foreign – wants is stability. The environment in the United States is incredibly unstable, so some of our investors are sitting on the sidelines.”

“Foreign capital flows into the U.S. will shrink in the near term. That said, the U.S. is typically the first market to readjust in terms of pricing, and that will create opportunity.”

“We’re starting to see slightly more trades, which opens up the door to better visibility into valuations, and as a result, may improve the comfort and volume of future trades.”

Data for the Q2 survey was gathered by Chicago-based Ferguson Partners on RER’s behalf in April. See the full Q2 report.

The Real Estate Roundtable brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending and management firms with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy.

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