WASHINGTON, May 29, 2015 /PRNewswire/ -- A growing number of
commercial real estate executives participating in The Real Estate
Roundtable's latest quarterly "Sentiment Index" expect market
conditions and prices to continue to stabilize over the next 12 to
24 months.
"Our Q2 2015 Sentiment Index shows that industry leaders
acknowledge a significant recovery in markets throughout the
country. How much of an upside is left in the current cycle is
a reasonable question in an environment of very strong valuations,
low interest rates and steady demand. When markets eventually
stabilize from this growth curve, we hope national policies will be
in place that will spur greater job creation and continue to foster
an appropriate flow of investment into the real estate capital
markets," said Roundtable CEO and President Jeffrey D. DeBoer.
The Q2 2015 Overall Index registered at 62 on a scale of
1-100. Comparing today's market to one year ago, 90 percent of
respondents reported that conditions are either "somewhat better"
or "about the same." When asked to forecast conditions one year
from now, 85 percent responded that markets will be "somewhat
better" or "about the same." Comparing real estate asset values
today versus one year ago, 82 percent of survey participants
reported prices are "somewhat higher" – but when asked to predict
values one year from now, 41 percent said they will be "somewhat
higher" while 44 percent responded "about the same."
"To encourage long-term investment in U.S. commercial real
estate markets and infrastructure projects that create jobs, The
Roundtable supports legislation recently reintroduced in the House
that would reform the Foreign Investment in Real Property Tax Act
of 1980 (FIRPTA). Another common-sense policy step to attract
foreign investment in job-creating projects would be to reauthorize
the EB-5 "immigrant investor" program that is scheduled to expire
in September," added DeBoer.
Data for the Q2 survey was gathered in April by Chicago-based FPL Associates on The
Roundtable's behalf. For the full survey report and The
Roundtable's 2015 policy agenda (Next: Real Estate's Policy
Agenda for a Sustainable Economy), visit www.rer.org.
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SOURCE The Real Estate Roundtable