From startups to legacy brands, you're making your mark. We're here to help.
Key Links
Prepare for future growth with customized loan services, succession planning and capital for business equipment.
Key Links
Serving the world's largest corporate clients and institutional investors, we support the entire investment cycle with market-leading research, analytics, execution and investor services.
Key Links
Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments.
Key Links
A uniquely elevated private banking experience shaped around you.
Whether you want to invest on your own or work with an advisor to design a personalized investment strategy, we have opportunities for every investor.
For Companies and Institutions
For Individuals
Explore a variety of insights.
Key Links
Insights by Topic
Explore a variety of insights organized by different topics.
Key Links
Insights by Type
Explore a variety of insights organized by different types of content and media.
Key Links
We aim to be the most respected financial services firm in the world, serving corporations and individuals in more than 100 countries.
Key Links
Commercial real estate professionals are slightly more optimistic about the year ahead than U.S. leaders overall, according to our 2023 Business Leaders Outlook survey.
The commercial real estate leaders surveyed hold various assets, with a concentration in multifamily. Nearly three quarters of these professionals expect increases in their revenue/sales and capital needs (both at 71%)—significantly higher rates than U.S. business leaders in general. Almost half of real estate leaders are optimistic about the global (44%) and national economy (46%). Nearly two-thirds (65%) are also optimistic about the industry’s performance in 2023, with 73% optimistic about their own company’s performance.
Leaders still anticipate challenges ahead—55% expect a recession in 2023. If an economic downturn occurs, real estate professionals were evenly divided on their first action: making strategic acquisitions (27%) or maintaining a steady state (27%).
Interest rates remain a prominent issue; 67% of respondents said rising interest rates/increased cost of capital are driving up business costs. Aside from the rate environment, leaders said the most pressing concerns facing the industry are lack of affordable housing (28%) and supply chain issues (28%).
Most respondents are also experiencing inflation challenges and rising costs (72%) but at a lesser degree than the total U.S. sample (91%). These challenges, however, may not hinder their growth; more than half of leaders plan to expand into new domestic markets.
Started in 2011, the annual and midyear Business Leaders Outlook survey series provides snapshots of the challenges and opportunities facing executives of midsize companies in the United States.
This year, 791 respondents completed the online survey between Nov. 29 and Dec. 13, 2022. Of those respondents, 157 self-identified as working in commercial real estate. The 2023 survey captures those responses for the inaugural Business Leaders Outlook: Commercial Real Estate.
Results are within statistical parameters for validity; the error rate is plus or minus 7.9% at the 95% confidence interval.
Economic outlook for 2023*
Global economy: Optimistic 44%; Neutral 17%; Pessimistic 39%
National economy: Optimistic 46%; Neutral 22%; Pessimistic 31%
Local economy: Optimistic 55%; Neutral 24%; Pessimistic 20%
Industry performance: Optimistic 65%; Neutral 14%; Pessimistic 21%
Company performance: Optimistic 73%; Neutral 20%; Pessimistic 6%
*Among respondents who indicated they work in commercial real estate.
National and global optimism
Optimism on national economy
U.S. commercial real estate leaders 46%
U.S. business leaders in general 22%
Optimism on global economy
U.S. commercial real estate leaders 44%
U.S. business leaders in general 8%
Pending recession
U.S. commercial real estate leaders: Yes 55%; No 36%; Not sure 10%
U.S. business leaders in general: Yes 65%; No 16%; Not sure 18%
Most likely business response to an economic downturn*
Make strategic acquisitions: 27%;
Maintain a steady state: 27%;
Optimize operations: 23%;
Adjust rents: 13%;
Reposition assets: 10%
*Among respondents who indicated they work in commercial real estate.
Nearly two-thirds of real estate leaders expect their profits to increase in 2023. Most expect their capital needs to increase as well.
Business expectations*
Profits: Increase: 65%; Remain the same: 18%; Decrease: 17%
Capital needs: Increase: 71%; Remain the same: 22%; Decrease: 6%
*Among respondents who indicated they work in commercial real estate.
Inflation is increasing business costs. The majority of commercial real estate leaders are passing those expenses onto consumers.
What’s driving up the cost of doing business*
Rising interest rates/increased cost of capital: 67%;
Increased cost of energy: 67%;
Increased costs of retaining/hiring employees: 65%;
Increased costs related to supply chain issues: 63%;
Increased costs of raw materials: 59%
*Among commercial real estate respondents who indicated they are experiencing inflation challenges/costs rising.
Percentage of increased costs passed onto consumers/buyers*
Up to 25%: 21%;
26%–50%: 19%;
51%–75%: 24%;
76%–99%: 6%;
100%: 7%;
None: 23%
*Among commercial real estate respondents who indicated they are experiencing inflation challenges/costs rising.
Leaders in real estate face a litany of challenges, including rising interest rates, supply chain issues and cyberattacks.
Top external business threats*
Cost of debt/interest rates/access to capital: 34%
Energy prices: 11%
Cybersecurity and fraud concerns: 10%
China and trade/policy concerns : 10%
General market volatility: 10%
*Among respondents who indicated they work in commercial real estate.
Top issues facing the commercial real estate industry*
Lack of affordable housing: 28%
Supply chain issues: 28%
Unclear future of office: 18%
Speed of technology innovation: 15%
Climate change: 11%
*Among respondents who indicated they work in commercial real estate.
Cyberattacks experienced in last six months*
Not directly impacted: 34%
Payments fraud: 33%
Business email compromise: 29%
Malware (including ransomware): 28%
Crashing of company’s online service or site: 27%
*Among respondents who indicated they work in commercial real estate.
More than half of leaders are planning to expand into new domestic markets. More than a third count strategic partners/investments, new products/services and new distribution channels among their growth strategies.
Growth strategies for the next 12 months*
Expand into new domestic markets: 54%
Strategic partnerships/investments: 37%
Introduce new products/services: 36%
Expand into new distribution channels: 31%
Focus on most profitable products: 29%
*Among respondents who indicated they work in commercial real estate.
Top areas of focus within corporate responsibility*
45% Diversity, equity and inclusion; 43% Governance; 41% Social
*Among respondents who indicated they work in commercial real estate.
From the regulatory environment to infrastructure, most real estate leaders feel the same or better about key issues after the midterm elections.
Sentiment following the 2022 elections*
Regulatory environment: Worse 29%; Same 39%, Better 32%
Corporate taxes : Worse 27%; Same 39%, Better 33%
Infrastructure: Worse 15%; Same 46%, Better 39%
*Among respondents who indicated they work in commercial real estate.
Who took the survey*
Chief Financial Officer: 34%
Owner/founder: 26%
CEO/chairperson: 24%
Other: 17%
*Among respondents who indicated they work in commercial real estate.
Assets owned/managed*
Multifamily: 71%
Office: 53%
Industrial: 52%
Mixed use: 49%
Affordable housing: 46%
Community impact developments: 32%
Retail: 24%
*Among respondents who indicated they work in commercial real estate.
Company size by number of employees*
1–49: 22%
50–99: 11%
100–249: 24%
250–499: 12%
500–999: 24%
1,000–4,999: 8%
*Among respondents who indicated they work in commercial real estate.
Company size by annual revenue*
Under $20mm: 15%
$20mm-$100mm: 39%
$101mm-$499mm: 43%
$500mm+: 3%
*Among respondents who indicated they work in commercial real estate.
Note: Some numbers may not equal 100% due to rounding.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for disclosures and disclaimers related to this content.
Outlook
Eye on the Market: The Thucydides cap on the China equity rebound trade
Oct 17, 2024
In this edition of Eye on the Market, Michael Cembalest, Chairman of Market and Investment Strategy for J.P. Morgan Asset and Wealth Management, explains what China’s equity rebounds might mean for participants’ returns.
Outlook
September 2024 CPI report: Inflation fell to 2.4%, moving closer to the Fed’s 2% target
Oct 11, 2024
The uptick in September’s core CPI reminds us that inflation pressure hasn’t fully dissipated, which should keep the Fed on a gradual pace of rate cuts going forward.
Outlook
September 2024 jobs report: 254,000 jobs added, defying expectations
Oct 07, 2024
U.S. job growth unexpectedly accelerated sharply beyond economists’ expectations, solidifying our strategists’ view that the Fed will lower interest rates by 25 basis points at its next meeting.
Outlook
Eye on the Market: Mind the gap
Sep 30, 2024
In this edition of Eye on the Market, Michael Cembalest, Chairman of Market and Investment Strategy for J.P. Morgan Asset and Wealth Management, looks at presidential candidate policy differences and implications for investors.
Outlook
Embracing opportunity in uncertain and volatile times
Sep 26, 2024
J.P. Morgan Wealth Management hosted a webcast breaking down current trends and their impact on markets. Here’s how investors can make smart decisions as 2024 comes to an end.
Outlook
Navigating political uncertainty: Potential investment implications for you and your business
Sep 26, 2024
J.P. Morgan Wealth Management held an online event to discuss how investors can stay on track amid uncertain times. Discover the key takeaways from the webcast.
Outlook
September 2024 Fed meeting: Fed cuts rates by half point to support economy
Sep 19, 2024
The Federal Reserve lowered interest rates for the first time in four years, thanks to welcome progress on its dual goals of restoring price stability and achieving maximum employment.
Outlook
August 2024 CPI Report: Inflation cooled, edging closer to the Fed's target
Sep 12, 2024
The August 2024 CPI report moderated to 2.5% year-over-year, cementing the likelihood that the Fed will begin cutting rates next week.
You're now leaving J.P. Morgan
J.P. Morgan’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan name.