Despite a strong first-half of 2011, uncertainty has returned to the US commercial real estate industry, according to DLA Piper's 2011 State of the Market Survey.
Volatile global financial markets, solvency concerns throughout the Eurozone, stagnant US job growth and gridlock between the White House and Congress have led to a pullback in optimism following a variety of upbeat indicators and reports that characterised the US commercial market for the first eight months of this year.
The survey, measuring the attitudes and perspectives of 291 top executives within the US commercial real estate market, reveals 7 out of 10 respondents describe themselves as 'bearish' for the next 12 months. Despite this sentiment, only a slim majority (53%) believe that recent capital markets turmoil will significantly derail transactions for the rest of 2011.
Locally, the outlook is similar. With foreign buyers a key part of the market, the global uncertainty has been reflected by a slowing in Australia. With the prospect of prolonged political and financial uncertainty, it is difficult for industry participants to predict which way the market will head.
Now in its seventh year, the survey reveals the changing attitudes across this tumultuous period. To get the full picture, the survey results can be viewed here.
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