Political Uncertainty Weighs on Investor Sentiment; Strong Fundamentals Underpin Sector Outlook

Continued uncertainty surrounding fiscal, tax and political policy weighed on investor decisions, according to the third quarter Marcus & Millichap/NREI Investor Sentiment Survey. Despite increasing caution, steady apartment and commercial real estate space demand remained a positive factor, containing the decline in sentiment. Many investors have stepped to the sidelines to await policy clarity, but 59 percent of surveyed investors still plan to boost their commercial real estate investments.

• Most Surveyed investors anticipate steady job creation through 2018, but 92 percent are concerned about higher interest rates.
• Respondents believe reduced regulations and lower taxes will benefit commercial real estate, but have concerns about trade protection and more stringent immigration policies.
• Industrial investors are presently the most optimistic about future asset appreciation, followed by apartment and hotel investors.

FULL REPORT: Political Uncertainty Weighs on Investor Sentiment