Senior commercial real estate executives are concerned about office and retail fundamentals as market uncertainty continues to curtail investors’ appetites for risk.
The Q3 2022 Real Estate Roundtable Sentiment Index registered an overall score of 44, a decline of seven points from the previous quarter’s overall score and 34 points down year-over-year. One survey respondent called retail in particular “a big unknown,” saying “we don’t know which tenants are going to stay in a brick-and-mortar store. The internet and Covid-19 have just accelerated this uncertainty. There is not a lot of appetite for it.” Another investor said office was “nuanced,” with COVID-19 accelerated disinterest into older or more vintage buildings.