After seven years of a strong bull market, some commercial real estate (CRE) executives express caution about what lies ahead, reported law firm DLA Piper, New York.
But 62 percent of CRE executives remain bullish about the sector over the next 12 months, according to the firm's 2016 State of the Market Survey.
"Despite some concerns by industry leaders, the survey shows that U.S. commercial real estate is viewed by many as a source of strength--or at least a place of calm and long-term stability--amid tumultuous global markets," said Jay Epstien, DLA Piper Global Real Estate practice co-chair. "It will be telling to watch how the next six months unfold as real estate executives position themselves to address a whirlwind of opportunities, risks and disruptions facing the U.S. and global markets."
The survey did not indicate a return to the outright pessimism seen during the Great Recession, DLA Piper noted. "Much of the concern appears to be driven by a combination of increased volatility in domestic and international stock markets and a feeling that prices might be at or near a peak," the report said.
Of the 38 percent of respondents with a bearish 12-month outlook, nearly half attributed their stance to continued volatility in domestic and international stock markets.
Survey respondents noted some bright spots. Non-U.S. investors still see the United States as a safe haven, with 37 percent of respondents...