CREFC also reported that negative responses from respondents to CRE fundamentals and their impact on CRE’s financial business results are diminishing. Only 10% were negative on CRE fundamentals, up from 13% in the first quarter and a fall from 43% in the fourth quarter of 2020.
However, board members expressed concern that government policy and regulation could negatively impact the results of the entire CRE finance business, from 13% in the first quarter to 30% this quarter.
“With the restrictions lifted in states across the country and the economy reopening, we look forward to a strong recovery with investors looking to leave the scene,” said Lisa Pendergast, CREFC chief executive. “With growing concerns about the impact of government policies and regulations on commercial real estate, CREFC is closely monitoring all decisions from Washington that could affect the industry and will provide our members with the latest analysis possible. As we move forward during the industry recovery period, I look forward to further understanding and perspectives from our board of directors. ”
Other key findings include: