Disruption 2020: Investor Sentiment Survey Second Edition
Colliers’ second Investor Sentiment Survey, now complete, allows us to identify some emerging changes in investor sentiment. Below are some of the most interesting differences between our surveys, which indicate more optimism now as cities and states across the country are reopening their economies in some way.
Investors are more optimistic.
Office investors are less bearish than in the first survey. Extreme changes seem less likely now.
Rent expectations have improved. The majority (54.7%) expect a 0–10% decline. 13.2% of office owners are expecting 0–10% rent gains in the next year.
73% still need higher return targets for office.
Fewer now expect massive value declines. In second-round responses, the majority (56.6%) expect flat to 10% declines.
Industrial investors are also more bullish — optimism is apparent.
Rent gains may be on the horizon. 36% expect 0–10% rent increases in 2020, up nearly 10 percentage points from our first survey.
A majority (58%) of investors have not changed their expectation for returns.
Investors are more optimistic on pricing trends. Only 8% expect a greater than 10% value decline, half of the respondents previously.
Retail investors are still pessimistic.
93.3% of respondents require an increase in their return target.
Only 6.7% of second-round respondents expect a less than 10% rent decline — 19.1% felt that way the first time around.
A majority (53.3%) expect a 20%–30% decline in pricing, up from 34.9% previously.
Multifamily investors are more optimistic.
An increasing share (21.4%) expect 0–10% rent growth.
Expectations on values have also firmed; 88.1% of respondents expect no more than 10% value declines.
