CREFC also reported that the respondents’ negative outlook on CRE fundamentals and their impact on the performance of CRE finance-related business was shrinking. Only 10% held a negative view of CRE fundamentals, compared to 13% in Q1 and down from 43% in Q4 2020.
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However, board members expressed their concerns about the potential of government policy and regulation negatively impacting the performance of all CRE finance-related business, up from just 13% in the first quarter to 30% this quarter.
“As restrictions are lifted in states across the country, and the economy reopens, we are hopeful for a strong recovery with investors eager to move off the sidelines,” said Lisa Pendergast, executive director of CREFC. “Given increasing concern about government policy and regulations’ impact on commercial real estate, CREFC is closely monitoring any and all decisions out of Washington that could impact the industry and will provide our members with the most up to date analysis possible. While we move further into a period of recovery across the industry, I look forward to the continued insights and perspective of our board.”
Other key findings include: