Sentiment is down for commercial real estate, yet improvement expected in the coming year
Although sentiment in the commercial real estate industry has decreased from fall 2021, conditions are expected to improve for the industry over the next 12 months, according to the latest edition of the NAIOP CRE Sentiment Index.
NAIOP, the Commercial Real Estate Development Association is an organization serving developers, owners, investors and related professionals in office, industrial, retail and mixed-use real estate. The NAIOP CRE Sentiment Index is designed to predict general conditions in the commercial real estate industry during the next 12 months by surveying industry professionals on the future conditions of their projects and markets. The survey includes questions about jobs, space markets, construction costs, capital markets and other real estate development fundamentals.
The current index is now at 53, down slightly from 56 in fall 2021 and very close to the 54 level of a year ago. Before the pandemic, the index was 57 before sinking to a low of 45 in