Real Estate Investor Sentiment Hits New Peak in 1st Quarter 2013, by NREI/Marcus & Millichap

File Type: Free Content, Article
Release Date: April 2013
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The NREI/Marcus & Millichap Investor Sentiment Index rose to another record high in the first quarter of 2013—up three points to 174-indicating that investor confidence in commercial real estate continues to climb to new heights, according to a new report. “The great news,” noted Hessam Nadji, a senior vice president and managing director at Marcus & Millichap in Calabasas, California, “is that investors continue to be optimistic about commercial real estate. That is even better news for the broader U.S. economy, as we know that the Investor Sentiment Index has proved to be a very accurate forecaster of economic direction.”

Investors remain firmly grounded by the challenges that remain, however, such as disappointing job growth and tax increases that could slow economic growth. That optimism is rooted in the fact that on balance, the economy continues to strengthen even amid some negative headlines. For instance, retail sales are now 12 percent above their 2007 peak and corporate profits are 15 percent higher than their 2006 peak.

“Investors are buoyed by low interest rates, improving occupancies and commercial real estate’s competitive yields compared to alternative investments,” said Nadji.