Twin Cities commercial real estate landlord reports on space for lease and overall trends, which point to an upturn in the overall global Commercial property market. All signs point to a strong 2013.

(Newswire.net — March 23, 2013) Minneapolis, MN — According to a summary report released by J.G.M. Properties, Inc. (a Minneapolis commercial real estate property management company), citing evident emerging trends in commercial real estate for 2013, all signs point to steady economic improvement which will likely lead to a respectable 1.5% to 2% global growth in GDP. This spells good times ahead, in particular for industrial properties in global transportation centers and global safe-haven cities such as London and New York that have invested in infrastructure. Commercial property investors are cautiously optimistic given the nation’s stalled economic recovery, which is due, in part, to sovereign debt problems and economic stagnation in Europe as well as slowing growth in emerging markets such as China and India. The U.S. CRE (Commercial Real Estate) recovery, although slow and unsteady, has been visible in capital availability, asset pricing and transactions, and improved fundamentals. In addition, space for lease is steadily filling up, as both temporary offices along with executive office space is being utilized by tenants looking for flexible lease terms, which ultimately allows them to grow or move as their respective business begins to take shape.

The good news is that there is a renewed optimism for ground-up commercial development with the start of the New Year changing the way lenders are looking at pipelines, allocations, and funding targets. While apartment developers were already enjoying plentiful availability of capital, more debt alternatives are now available for those seeking to fund retail space for rent, commercial office space, and business office space. As tenant-driven expansion through the increased demand for temporary offices and retail for lease increases, this trend will likely gain momentum through 2013. Economic and business trends will continue to shape the way commercial property performs; projects with significant preleasing and excellent sponsorship that offer unique value propositions and are well-located will do well.

Mitch Roschelle, partner, U.S. real estate advisory practice leader, PwC says, “With the outlook for commercial real estate continuing to improve in 2013, investors are expected to allocate substantial sums of capital to the real estate asset class, according to our survey respondents,” said. “As yield in bonds and other financial instruments tighten in a still volatile market, commercial real estate’s income producing and total return attributes offer investors potentially attractive risk-adjusted returns.”

The commercial real estate market is stabilizing with banks and other capital providers ready to lend, putting capital into quality projects that in recent years have been capital starved. Primarily Due to higher liquidity and relatively easy access to capital markets, REITs (Real Estate Investment Trusts) will continue to outperform others. In addition, office space lease terms are getting more flexible for tenants, as landlords now accommodate temporary offices, short term leasing, and options for early lease termination.

J.G.M. Properties, Inc. a small, family owned, commercial management company currently located in Bloomington, MN has released this report presenting a summary of emerging trends in commercial real estate for 2013. J.G.M.’s primary focus has been on office space for lease Minneapolis suburbs.

Cited source: Randy Evans, Eastdil Secured (2013). Commercial Real Estate Lending Picks Up [Blog]. Retrieved from: bizjournals.com/atlanta/real_talk/2013/03/commercial-real-estate-lending-picks-up.html?page=all

Cited source: PwC (2012). U.S. Commercial Real Estate Recovery to Advance in 2013…[Press Release]. Retrieved from: pwc.com/us/en/press-releases/2012/emerging-trends-in-real-estate-press-release.jhtml