Commercial Real Estate professionals are bullish about the market, according to DLA Piper’s “State of the Market Survey.”
The survey, which was released earlier this month, measured the perspective of 158 top commercial real estate executives and found the greatest amount of enthusiasm for the market since the company started releasing the survey nearly a decade ago.
Real estate executives cite abundant supplies of debt and capital and the steady strengthening of the US economy as the top reasons they are optimistic about the year ahead. Adding to the anticipation of free-flowing capital is the near-unanimous expectation that interest rates will either remain where they are or increase only slightly. Eighty-three percent of respondents say they expect interest rates to increase, and 73 percent of that group believe there will be no corresponding change to cap rates. — DLA Piper
But the report does find that executives are uneasy about issues such as re-urbanization and disruption from “e-tailing.”
The greater national confidence in the market generally reflects sentiment that business is improving in Maryland compared to the lows following the Great Recession. Still, the market — especially certain submarkets — are not as robust as some would like.