Dive Brief:

• An Ackerman LLP survey of 200 top national real estate executives demonstrated rising investor confidence in the beleaguered commercial sector, justified primarily by increased confidence in institutional lending.

• Respondents believe that banks will increase funding in 2014, with confidence in the banking sector increasing by 34% since 2011. 70% of surveyed executives reported a more optimistic overall market outlook over last year.

• Survey respondents predicted private equity sources will drive 2014 financing, while REITs will remain the leading source of real estate debt and equity funding. Government entities are expected to remain at the bottom of the capital availability pool.

Dive Insight:

Although investor confidence has grown, lingering uncertainty fueled by governmental concerns remains. 52% of respondents cited legislative policies and Congressional stalemate as the primary causes of lack of confidence.

Akerman, a top 100 law firm, developed the Real Estate Industry Outlook Survey after the real estate downturn to assist clients in understanding and anticipating market changes.