CRE Exec Optimism at Five-Year Record-High

MIAMI—Optimism among the nation's leading real estate executives rose to a record-high since the collapse of the financial markets almost five years ago. So says a survey from Akerman Senterfitt's U.S. Real Estate Summit.

Eighty-six percent of survey respondents shared a more optimistic outlook just after the first quarter of the year, a 4% increase over 2012. Despite improved confidence in the economy and the availability of equity capital investment, clouds of uncertainty do remain over lawmaker decisions in Washington, D.C.

The survey results, measuring the attitudes and perspectives of national leaders in commercial real estate development, investment, and financing, showed a broad consensus that the multifamily sector would see the most deals in 2013. Roughly 60% of respondents currently see multifamily development as the most active market sector and 55% believe that the sector will return to prerecession levels by the end of the year. Only one-fourth predict that the retail, hospitality, and industrial sectors will begin to peak by 2014.

Respondents cited government policies (37%) and global economic uncertainties (21%) as primary reasons for their lack of confidence. This is a large shift of concerns from the last two years.

Since 2011, Akerman's survey has found that the availability of credit has been the most pressing issue among executives (53% in 2011; 43% in 2012). However, executives are divided on how to respond to investment endeavors. Forty-eight percent believe that now is the time to aggressively buy commercial properties while the other half believe it is better to either sell aggressively or stand pat and watch the market.

“We introduced Akerman's U.S. Real Estate Summit after the real estate downturn and each year the Summit has served as an exclusive forum for the nation's industry leaders to exchange insights on the latest challenges impacting investment opportunities,” said Richard Bezold, chair of the Akerman Real Estate Practice Group. “Volatile financial markets and government policies have tested optimism over the last few years, but industry executives are finding creative avenues for growth. Their inventiveness in core markets has led to the recovery of not only the real estate industry but also major cities across the U.S.”