Senior Economist Tarrant Parsons discusses occupier and investor sentiment as economic conditions shape a very challenging outlook.
The increasingly uncertain economic conditions continue to make an impact in commercial real estate around the world. The Royal Institution of Chartered Surveyors’ third quarter Global Commercial Property Monitor shows that industrial demand remains relatively solid for now, but the appetite to occupy industrial space is slightly decreasing. In the office sector, demand keeps deteriorating, with 80 percent of the respondents participating in the organization’s latest survey anticipating scaling back in the office footprint over the next 12 months.
Under pressure from both high inflation and monetary policy tightening, the commercial real estate sector in the Asia Pacific region appears to be facing downward risks, according to the RICS research paper. In Europe, the higher interest rates and weakening economic backdrop are weighing heavily on market sentiment, while the Q3 results across North America point to a further deterioration in sentiment, particularly for investment. The Middle East seems to be the standout performer in terms of the sentiment provided by contributors to the latest survey, led by Saudi Arabia and the UAE.
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To learn more about conditions in commercial property occupier and investor markets around the world, press play now! Commercial Property Executive Senior Editor Laura Calugar talked to RICS Senior Economist Tarrant Parsons about the results of the survey.
Here’s what you’ll hear about in this episode:
- The overall economic context (0:53)
- The standout performer in terms of the sentiment in Q3 (2:03)
- Industrial, office and retail demand across the globe (4:24)
- How credit conditions are impacting commercial development (6:16)
- Global capital values (7:47)
- The results of the latest survey in the APAC region (10:00)
- The situation in Europe (11:54)
- The commercial property market in Canada and the U.S. (13:26)
- Expectations for the global economy in Q4 (14:58)
- Will the global economy officially enter a recession in 2023? (16:15)
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