VIENNA, VA—Sentiment among the institutional real estate brokerage community nationwide remained positive in February but was slightly below the previous month, Capital One Securities said Wednesday. In particular, the survey registered declines in the indexes for current conditions and changes in expectations of future conditions, albeit with differences of opinion among regions and property types.
On a scale of 0 to 10, with 0 representing “worst” and 10 representing “best,” the current conditions index averaged 7.0 nationwide. The Southeast came in highest at 7.7 among regions, while for property types it was a tie of 7.5 between multifamily and industrial. The Mid-Atlantic posted the lowest regional average at 6.6, particularly among the region's office brokers; office posted the lowest score among property types at 6.7.
By comparison to December 2016 or January of this year, the month-over-month change in business conditions came in lower at 5.68, compared to 5.79 in December and 5.76 in the previous month. Looking at future conditions six months from now, the average score was 6.7 on a scale of 0 – 10, unchanged from January. The distribution was skewed to the upper half of the range, according to Capital One Securities.
“I'm cautiously optimistic that if Congress can return to regular budgeting, with no more continuing resolutions or sequestration, then the federal spending that underlies our regional economy will allow for regular planning and commitments to new projects,” opined a land investment sales broker in the Hampton Roads, VA area. Across the board, investment sales brokers posted higher sentiment scores than their counterparts on the landlord rep or tenant rep sides.
“Change in expectations of future conditions” over the previous month averaged 5.6, a 0.2 decrease from January, with the distribution fairly centered around the mean. Here, the Mid-Atlantic posted the best overall score at 6.1, while the New York/New England states came in with the lowest at 4.9.
Capital One Securities surveys commercial brokers on a monthly basis. The survey for February was conducted among 133 brokers across the office, multifamily, industrial, retail and miscellaneous property sectors.
VIENNA, VA—Sentiment among the institutional real estate brokerage community nationwide remained positive in February but was slightly below the previous month,
On a scale of 0 to 10, with 0 representing “worst” and 10 representing “best,” the current conditions index averaged 7.0 nationwide. The Southeast came in highest at 7.7 among regions, while for property types it was a tie of 7.5 between multifamily and industrial. The Mid-Atlantic posted the lowest regional average at 6.6, particularly among the region's office brokers; office posted the lowest score among property types at 6.7.
By comparison to December 2016 or January of this year, the month-over-month change in business conditions came in lower at 5.68, compared to 5.79 in December and 5.76 in the previous month. Looking at future conditions six months from now, the average score was 6.7 on a scale of 0 – 10, unchanged from January. The distribution was skewed to the upper half of the range, according to
“I'm cautiously optimistic that if Congress can return to regular budgeting, with no more continuing resolutions or sequestration, then the federal spending that underlies our regional economy will allow for regular planning and commitments to new projects,” opined a land investment sales broker in the Hampton Roads, VA area. Across the board, investment sales brokers posted higher sentiment scores than their counterparts on the landlord rep or tenant rep sides.
“Change in expectations of future conditions” over the previous month averaged 5.6, a 0.2 decrease from January, with the distribution fairly centered around the mean. Here, the Mid-Atlantic posted the best overall score at 6.1, while the
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