Commercial real estate market starts to shine

For the first time in a few years there were cheery vibes at a Florida commercial real estate conference — and not merely because this one was held in Miami Beach.

Indeed, the “Outlook 2013: Opportunity Amid Uncertainty” seminar sponsored by CBRE, held Nov. 16 at the Loews Hotel in Miami Beach, was a hotbed of optimism. “Our professionals are confident in the business and investment outlook for 2013,” says CBRE Executive Managing Director for Florida Mary Jo Eaton.

On the investor side, for example, commercial real estate continues to outperform several other investment sectors. Actual property and real estate investment trusts show gains of more than 12% over a one-year period, and are up 10.3% and 8.3%, respectively, over 10 years, CBRE reports. Government bonds are lower, at 8.3% over one year, and a comparatively paltry 5.4% over a 10-year projection.

The brokers and agents also chatted about trends for 2013 at the conference. Lease rates have already begun to increase statewide, say some brokers, a sign that the recovery has impacted supply and put a “constraint on Class A product.” That factor, in turn, encourages more build-to-suits.

Brokers also project that government incentives, reduced floor plan requirements and industry-specific growth are three elements that will shape further office development in the state.