Marketplace FEEDBACK
CRE
Outlook
Sur ve y
Industry leaders are keeping a close eye on financing
as they expect 2008 to be the first off year in a while
for many of Florida’s commercial real estate sectors
Compiled By Carl Cronan
Commercial real estate professionals will “follow the
money” this year in charting their own success,
though the vast majority of respondents to Real Estate Florida’s first outlook survey indicate expecting little or
no improvement in markets statewide for 2008.
At least 42% of executives responding to our online survey
indicate they expect little improvement in the market through
the remainder of this year, while 30% stated that they anticipate no improvement and 22% clicked on moderate improvement.
Asked what issues will have the greatest impact on the commercial property market, ranking three choices in order of im-
portance, respondents indicated a shortage of skilled labor,
interest rates and availability of capital as their first choice.
Energy and development costs garnered the most votes for
second choice, with loan defaults and falling consumer confidence leading as their third choice.
“Past CRE markets have flourished with increased energy
costs, geopolitical, consumer confidence, higher property
taxes and skilled labor,” comments a managing director from
a financial firm in Southeast Florida. “But pricing and trading
within capital markets is critical to a recovery.”
On the subject of return on investment, specifically which
areas will offer the greatest potential for ROI, most respon-
