RICS: Rental Expectations Continue Decline

NEW YORK CITY-US commercial real estate professionals’ confidence in rental rates and property values continues to diminish, says RICS Americas as the global RICS organization releases its quarterly Global Commercial Property Survey. The survey, which tracks sentiment among property professionals internationally, shows that US professionals have plenty of company among their counterparts in other markets.

For example, the US ranks eighth from the bottom in terms of expectations for rents in the second quarter, tailed only by the United Arab Emirates, Romania, the Ukraine, Hungary, the Republic of Ireland, Hong Kong and Singapore. However, markets such as Russia, India, Australia and the UK aren’t far ahead.

The US ranks 19th out of 41 markets in Q2 expectations for capital values–an investment measure that converts rent into a capital sum–in the latest RICS survey. Only Brazil professionals reported an expectation that values will increase. US respondents expect little easing in the pace of price decline in the coming three months, according to RICS Americas. Although the upward shift in yields has moderated across most regions globally, it has increased in pace in the US.