Commercial real estate industry sentiment returns to pre-pandemic level
NAIOP, which has created a commercial real estate industry Sentiment Index, reported that sentiment has increased from April and returned to pre-pandemic levels, according to the results from the fall 2021 survey.
The current sentiment index is 56, up from 54 in April and equal to March 2019, one full year before the pandemic began. At the pandemic’s worst point — March through September 2020 — the Sentiment Index sank to 45.
“The sentiment for commercial real estate is the most positive has been since the pandemic began,” said Thomas Bisacquino, president and CEO of NAIOP. “Our industry plays a significant role in the U.S economy, and we remain cautiously optimistic that commercial real estate and the nation’s economy will continue to expand.”
Commercial real estate professionals expect construction costs to continue to rise, but they see the pace of material price inflation slowing, according to the report. Most respondents indicate that constr