Commercial Real Estate Execs More Confident, Although "Headwinds" Remain

   Commercial Real Estate Execs More Confident, Although "Headwinds" Remain

Survey Participants Cite Policy Risks Including Expiration of U.S. Terrorism
Insurance Program, Slow-Growth Tax Reform, Conditions for Monetary Policy

PR Newswire

WASHINGTON, Feb. 20, 2014

WASHINGTON, Feb. 20, 2014 /PRNewswire-USNewswire/ --U.S. commercial real
estate markets continue their gradual recovery from recession — as reflected
by improving fundamentals, transaction volumes and capital flows (especially
in non-"gateway" markets) — and will likely remain on a modestly upward
trajectory over the coming year, according to The Real Estate Roundtable's
latest quarterly Sentiment Survey, released today.

Real Estate Roundtable President and CEO Jeffrey DeBoer.

Yet, the Q1 survey shows a lingering wariness among senior industry executives
about prospects for a sustainable economic recovery. Thus, despite a
brightening economic outlook and recent bipartisan cooperation on the federal
budget and debt ceiling, various policy risks continue to weigh on real estate
markets. These include the scheduled sunset of the Terrorism Risk Insurance
Act (TRIA) on Dec. 31, which could spark a job-killing commercial real estate
credit crunch; tax reforms that could cause major dislocation in real estate
markets; and the economic conditions surrounding future interest rate hikes,
which could put renewed pressure on valuations, complicate loan refinancing,
and impede debt servicing.

"The slight uptick in our latest Sentiment Index shows our industry on a
generally positive path — in keeping with broader macroeconomic trends — yet
still not fully recovered, and still subject to policy-related risks," said
Roundtable Chairman Robert S. Taubman, who is chairman, president and CEO of
Michigan-based Taubman Centers Inc. "U.S. policymakers must work to create a
more attractive climate for job creation and investment as these are critical
to real estate's health — and as real estate goes, so goes the economy," added
Taubman, whose firm owns an international portfolio of regional and super
regional malls.

Roundtable President and CEO Jeffrey DeBoer added, "As today's survey shows,
our industry generally has stabilized, and is poised to lead the economy
forward once again — in the areas of job growth, GDP, tax revenue, and retiree
investments held by U.S. pension funds. But for these contributions to
materialize, Washington needs to foster appropriate risk-taking and
entrepreneurial activity; provide more clarity on key policies; protect U.S.
economic and homeland security; and enact positive, pro-growth reforms in the
tax, immigration and energy policy spheres."

For the full survey report and The Roundtable's 2014 Policy Agenda (Together:
Real Estate, Jobs, Economic Growth), visit us online at The
Sentiment Survey is conducted by Chicago-based FPL Advisory Group on behalf of
The Real Estate Roundtable.


SOURCE The Real Estate Roundtable

Contact: (202) 639-8400; Xenia ("Ksen-ya") Jowyk:; Scott
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