Investor Sentiment Remains High


Welcome to this week’s installment on real estate trends! Head over to our Youtube channel and take a look at one or two articles featured on WealthManagement.com to learn more.

Today we want to talk about a survey done and published in Wealth Management Real Estate. It’s really about investor sentiment, which is always key. Investor sentiment, interest rates, and occupancy rates are really the key factors that go along with commercial real estate. The survey reports investor sentiment remains high and resilient. It took a huge plunge last spring, as you would expect, but as did everything else it started coming back fairly strong in Q3 of 2020. This is a an updated survey published here, and to the question “when do you expect to have a full recovery from the pandemic,” 22% said “in 2021.” That’s a bit lower than we expected, but this is a nationwide survey and conditions are very different around the country. 46%, so that’s almost half, said “in 2022,” so between the two groups, investors are expecting basically in the next 18 to 20 months to have a full recovery. 19% said 2023, and 12% percent said 2024 or after.

The other part of the survey we’ll talk about are the biggest concerns, and we’ll just talk about three here. Of course the number one concern in the next 12 months is containment of the coronavirus. That’s sort of a no-brainer. 54% also stated concerned for the state of the economy. There does seem to be a lot of concern over the general economy, although the capital markets don’t seem to share that, but it seems to be a growing sentiment that this can’t go on forever. It could be that it seems that there are powers that are fighting against going back to normal or to removing virus restrictions. The last one is high unemployment. Of course, we’re seeing that coming down, and as restrictions are removed, people will go back to work, and things should get back to whatever the new normal is going to be.

Anyway, both of the articles linked about are a good read. All of these factors have an impact on commercial real estate, and we can help you analyze your investments or your needs as a business. Give us a holler anytime! We’d love to talk to you.

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