REALpac Study Shows Sinking Confidence in Commercial Real Estate
A gloomier-than-usual economic outlook has top commercial real estate executives concerned about where the local market is heading, according to a Real Property Association of Canada (REALpac) study. (There's a lot of money in commercial real estate tarot card reading now-a-days.)
"With so many unknowns in the picture right now, including a slower-than-expected recovery in the US, it's no surprise that there's a mixed bag of sentiments among property leaders right now," REALpac VP Carolyn Lane (second from the left). The REALpac quarterly surveys measure current outlooks on real estate conditions, values and availability of capital. Many market participants see higher interest rates, a decrease in transactions, and cap rate decompression in the short-term future. Carolyn added that while the study showed concern over short-term speed bumps, fundamentals are still seen as strong, and the general consensus about the long-range forecast remains positive. (So don't turn to a life of crime just yet.)
