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Commercial Real Estate - J.G.M. Properties, Inc. Releases a Report Indicating
the Increasing Stability in the Commercial Real Estate Market, Fuelling 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 Minneapolis \ St Paul 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 .