NEW YORK CITY—Results from the Q2 2014 United Realty/Zogby Real Estate Confidence Index suggest that commercial real estate investors expect opportunistic and value-add properties will better weather a rising interest rate environment.
Namely, some 77% of respondents expect interest rates to remain flat or rise over the next twelve months, with 45% anticipating a 50 basis-point increase, and 15% anticipating increases of more than 100 basis-points in the 10-Year Treasury.
At the same time, over the next twelve months respondents believe that value-added opportunities will be most attractive (88%), closely followed by opportunistic assets (70%). Core investments were seen as the least attractive of the three property types surveyed, on a relative basis, with 63 percent of respondents considering core investments attractive.
To learn more and for full survey click here: United-Realty-Zogby-Q2