Survey: CRE sector growing, but still vulnerable

Property investment among commercial real estate companies would likely increase should various economic factors show improvement during the remainder of 2012.

Improvements continue to be made in the commercial real estate markets, but confidence in continual growth in the sector is weak, according to results of the latest Real Estate Roundtable survey.

Global and national economic concerns, including issues with taxes and the Eurozone, were cited as a main reason for the diminished sentiment in the CRE market for the following year, executives noted in the second-quarter survey.

The "Overall Index," which is a mark of how the CRE market is performing, was recorded at 70 for the second quarter – up from a reading of 68 in the first quarter.

"Fostering a commercial real estate recovery that extends beyond so-called 'Class A' or trophy assets in gateway markets still depends on an improved jobs picture, more confidence among businesses and consumers, and reduced uncertainty on looming tax and budget issues," said Daniel M. Neidich, RER's Chairman.

He added that the survey reinforces the widely held belief by industry members that more policies that would improve the nation's jobs sector and investment market are needed.

Property investment among commercial real estate companies would likely increase should various economic factors show improvement during the remainder of 2012.

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