Commercial real estate leaders are more confident about investing in the U.S. economy than in global markets, according to the 2016 Real Confidence survey from Altus Group, in partnership with NAREIT and the National Council of Real Estate Investment Fiduciaries (NCREIF).
On a scale from zero to 100, executives surveyed rated their confidence in the U.S. economy at 63.3, compared to a rating of 45.4 for the global economy. Respondents rated their confidence in the state of the U.S. real estate industry at 68.5, while their confidence that real estate development will increase stood at 58.9.
Executives were also asked to allocate a theoretical $1 billion in capital into a mix of real estate investment options that they projected would yield the highest return in 2016. The portfolio they created included a 31.2 percent allocation to REITs.
The first-time survey, released Feb. 29, included responses from a variety of real estate funds, private equity firms, listed REITs and debt-driven organizations. The respondents have a combined $700 billion in assets under management.
(Contact: Ron Kuykendall at rkuykendall@nareit.com)