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Increasing Stability in the Commercial Real Estate Market, Fuels Investor Confidence

A summary report that was recently released by Minneapolis - St Paul commercial real estate landlord indicates a substantial increase in investor confidence, which suggests that the commercial real estate industry is in full recovery mode.

(Newswire.net -- April 14, 2013) Minneapolis, MN -- In a brief summarized report released recently, J.G.M. Properties, Inc. cites recent predictions which indicate the likelihood that commercial real estate transaction volumes will account for a total of $310 billion in 2013; an increase of 7% from last year. Despite the indecision of governmental sequestration and a sluggish economy, economists and analysts are notably more optimistic about the commercial real estate market now than they were six months ago as the industry continues to show robust and consistent growth. They have increased their previous predictions for lending activity and transaction volume over the next three years. As the economy continues to recover, the commercial real estate industry is witnessing a revival of investor confidence.

According to this commercial real estate summary report released by J.G.M. Properties, Inc., apartments have undoubtedly emerged as the biggest commercial real estate submarket attracting the largest volume of investment dollars in 2012 and are expected to lead the nation in terms of ROI at 10% this year. Industrial/warehouse returns are expected to be right behind multifamily this year at 9.9% while returns for the office sector are expected to close out the year at 9%, behind industrial and multifamily; tying in third place with retail.

As absorption increases, rent growth is expected in the office, industrial and commercial retail real estate sectors through 2014 while vacancy in all commercial real estate categories is projected to decline. With a 12 percent year-over-year increase across all sectors, real estate prices gained traction across all commercial real estate price categories. The Investor Sentiment Index has proven to be a very accurate foreteller of economic direction; the best news for the broader U.S. economy is that investors continue to be optimistic about commercial real estate.

A representative of this Minneapolis office space and warehouse space company references a quote indicating that, “In the first quarter of 2013, the NREI index rose to a record high of 175, which clearly demonstrates the positive outlook for Minnesota commercial real estate investments that has been steadily building since the last quarter of 2010. The projected commercial real estate volume is estimated to be around $360 billion in 2015.”

J.G.M. Properties, Inc. has been in the St Paul – Minneapolis commercial real estate management sector since 1980. Headquartered near Minneapolis, MN JGM released this report presenting a summary of emerging recovery trends in the commercial real estate market overall. JGM specializes in providing suburban Minneapolis office space and warehouse space for rent.

Cited Source: bizjournals.com
Cited Source: prnewswire.com
Cited Source: journalrecord.com

Increasing Stability in the Commercial Real Estate Market, Fuels Investor Confidence
Commercial Real Estate

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