CORFAC News

CORFAC members found that overall business sentiment in major markets remains encouraging, even as concerns emerge about the impact of inflation and rising interest rates, according to the organization's 1Q22 Business Sentiment Survey results.  

“CORFAC members continue to see strong deal activity even as we contend with political and economic unknowns,” said 2022 CORFAC President Mason Capitani, SIOR, Principal of L. Mason Capitani/CORFAC International in Detroit, MI. “Our quarterly survey shows that our brokers have unique perspective on how macro trends affect their markets and can use that to help their clients make better forward-looking decisions.” 

The survey of member firms from 40 markets around the world revealed: 

• The largest source of new business is existing clients who are expanding, according to 70% of members surveyed, an increase from 63% the previous year. Clients relocating to the market was the next highest source of new business with nearly 50% indicating new transactions coming from these sources.
• 62% of members believe office will be the CRE sector that changes the most in 2022 as companies adjust to the prevalence of remote and hybrid workforces. What started as a pandemic shift is turning into a new normal for many businesses. However, some members point to huge multinational corporations such as Google bringing back employees as a reason for office-market optimism. 
• More than 55% of members said inflation and rising interest rates are the factors that will have the most negative effects on CRE transaction activity for the foreseeable future. Continued supply chain challenges and the constrained labor market are compounding those rising costs to cause uncertainty in the CRE marketplace in select locations. 
• Despite these impending concerns, more than 75% of CORFAC members describe overall business sentiment in their markets as somewhat to very positive, which bodes well for transaction volume, leasing activity and investment performance in the coming months. 

CORFAC's 70 offices in 18 countries are the world's leading independently owned brokerage network. Our local-market experts provide top-level client service in all areas of commercial real estate brokerage.