Continued uncertainty surrounding fiscal, tax and political policy weighed on investor decisions according to the third quarter Marcus & Millichap/NREI investor sentiment survey. Despite increased caution, steady apartment and commercial real estate space demand counterbalanced a portion of the uncertainty, containing the decline in sentiment. Though some investors have stepped to the sidelines to await additional policy clarity, many see this as a window of opportunity, with less competition for assets–59% of surveyed investors plan to increase commercial real estate investments during the next 12 months. Most investors anticipate steady economic growth in 2017 and 2018, but 92% of surveyed investors cited rising interest rates as a concern for the coming year. Respondents believe reduced regulations and lower taxes will benefit commercial real estate, but considered trade protection and more stringent immigration policies to be less favorable for these assets. Given the high demand for e-commerce and logistics facilities in Texas and elsewhere, it is no surprise that industrial investors are presently the most optimistic about future asset appreciation, followed by apartment and hotel investors, according to the report.—Lisa Brown