Commercial Sector Predicts Rocky Ride for 2012

The ""Real Estate Roundtable's"":www.rer.org/ new quarterly survey demonstrated a lack of confidence in the outlook for 2012 among commercial real estate executives. According to data from the group's Sentiment Survey, the market improvements seen on a year-over-year basis aren't mitigating concerns surrounding global economic risks and tax issues in the commercial sector.

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""Although more respondents in our second-quarter survey see current conditions, asset values and capital availability as being better than a year ago, anecdotal responses continue to show a high level of uncertainty about economic conditions here and abroad, as well as tremendous concern about the array of policy

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issues awaiting action or clarification by U.S. policymakers,"" said the Roundtable's president and CEO, Jeffrey DeBoer.

""Add to that growing concern over borrowers' ability to refinance vast amounts of maturing commercial mortgage debt, and it's no surprise that expectations for the year ahead are relatively flat,"" he added.

The Sentiment Survey's ""Overall Index"" is up slightly from the first-quarter, standing at 70 versus 68 earlier in the year. However, the index tally represents a decline over 2011 totals when the Overall Index reached 77.

The majority of respondents indicated that they anticipate ""some improvement in overall market conditions, asset values, and capital availability one year from today,"" yet the bulk of those participating also expect for each of the those three areas to exhibit stagnant or declining behavior between now and the second-quarter of 2013.

Issuing a call to action for lawmakers, the Rountable's chairman, Daniel M. Neidich, stated, ""Fostering a commercial real estate recovery that extends beyond so-called 'Class A' or trophy assets in gateway markets still depends on an improved jobs picture, more confidence among businesses and consumers, and reduced uncertainty on looming tax and budget issues. Our second-quarter survey confirms the need for swift policy action to boost employment, business investment, and economic certainty.""