#71 – Inside Our Industry – NAIOP Survey Finds Industry Sentiment Back to Pre-Pandemic Levels
Posted on | Inside Our Industry
NAIOP, North America’s leading organization for developers, owners and investors of office, industrial, retail and mixed-use real estate, posts a Sentiment Index based on survey results from commercial real estate (CRE) professionals. Readings above 50 mean favorable CRE conditions are expected in the next 12 months, while readings below 50 indicate unfavorable CRE conditions in the next 12 months.
NAIOP Survey Finds Industry Sentiment Back to Pre-Pandemic Levels
Paul Bubny | connectcre.com | October 12, 2021
NAIOP’s latest Sentiment Index finds that commercial real estate industry sentiment has increased from April and returned to pre-pandemic levels.
The current sentiment index is 56, up from 54 in April and equal to March 2019, one full year before the pandemic began. At the pandemic’s worst point – March through September 2020 – the Sentiment Index sank to 45.
“The sentiment for commercial real estate is the most positive has been since the pandemic began,” said Thomas J. Bisacquino, president and CEO of NAIOP. “Our industry plays a significant role in the U.S economy, and we remain cautiously optimistic that commercial real estate and the nation’s economy will continue to expand.”
The majority (62.7%) of respondents to NAIOP’s fall survey expect to be most active in projects or transactions related to industrial properties over the next year. Multifamily attracted the next largest share of interest (22.6%), followed by office (11.9%).