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Commercial real estate executives have faith in their sector, according to the “2016 Commercial Real Estate Outlook” released by CIT Group Inc.
The new report finds 52 percent of surveyed commercial real estate executives believed their sector is either strong or very strong, while 71 percent said adequate capital is available for investment and 24 percent believed capital is available for “the right” deals only. When asked about financing, slightly over half of respondents say that they are lengthening the duration of their financing in an effort to lock in today’s relatively low rates over a longer period of time.
Furthermore, 34 percent of surveyed executives said that green tax credits and cash grants are having a significant influence over their design/renovation and related commercial real estate investment choices. But executives expressed mixed feelings on the impact that the new inclusionary housing mandate trend would have on future residential developments, with 31 percent stating it was a positive development and 26 percent claiming otherwise.
“Commercial real estate executives appear relatively optimistic about the general state of the market in 2016, with many predicting higher than average deal volumes for their firms,” said Matt Galligan, president of CIT Real Estate Finance. “Further, when considering the adoption of new technology, most believe that the influx of commercial real estate tech companies is revolutionizing the industry.”