The NAIOP Sentiment Index is a composite of nine survey questions regarding increased employment, occupancy rates, effective rents, construction labor costs, available debt and general sentiment, among a couple others over the next 12 months.
Respondents believe that the overall market will continue to be favorable for the commercial real estate industry. This seems to reflect an expectation that the CRE market is approaching a period of slowing growth.
The two main positive changes in the survey were related to the cost of construction labor and capitalization rates. Respondents expected labor costs to rise a bit more slowly and cap rates to rise at a lesser rate than they expected six months ago.
To read the complete NAIOP survey, click here for the pdf file