CPE 100 Quarterly Sentiment Survey: A Bubble is Forming, but Status Quo Prevails for Now via Commercial Property Executive

A resurgent investment market is raising an inevitable question: is a bubble forming in commercial real estate? According to the midyear CPE 100 Quarterly Sentiment Survey, the answer is definitely “yes.”

Asked about the likelihood that a bubble would appear in the next 12 months, a solid majority of executives surveyed–62 percent—agreed. The finding is a highlight of the quarterly poll of the CPE 100, a select group of leading commercial real estate executives.

Another response underscores the impression that years of overachievement by multi-family properties may be coming to a close. Half of the executives surveyed half identified the multi-family sector as the asset category where a bubble is most likely to appear. By contrast, only 21 percent named single-family homes as most likely to experience a bubble, followed by hospitality and office properties, each cited by 14 percent.

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