Wednesday, November 7, 2012

Commercial Real Estate Will Continue to Improve in 2013, but a Real Take-Off Will Have to Wait

Michael Bull
ATLANTA, GA – The commercial real estate industry has made a slow but steady recovery since the depths of the Great Recession, and 2013 will see more of the same.

 The most recent episode of “America’s Commercial Real Estate Show” presented detailed projections for the upcoming year from show host Michael Bull and Robert O’Brien, a partner and vice chairman with Deloitte & Touche and the leader of the firm’s U.S. Real Estate Services Group.

 “2013 will be a year of opportunity,” said Bull, the founder and president of Bull Realty. “We should see continued slow growth. We should see more transactions and more business for everyone involved in the industry.

Robert O'Brien
Certain macro-economic factors, such as below-average GDP growth, will prevent the various commercial real estate sectors from truly taking off, according to O’Brien.

 “Although we’ve seen a great recovery in real-estate fundamentals over the past couple of years, we think without more robust economic growth, it’s going to be difficult for real significant growth in real estate,” he said.

 Deloitte & Touch recently released its “Commercial Real Estate Outlook: Top Ten Issues in 2013” report.

According to O’Brien, multifamily is currently the strongest commercial real estate sector, followed by lodging, office, industrial and retail. “We have seen improving consumer confidence and improving consumer sentiment, which should be good for retail,” O’Brien said. “But to some extent, that’s been offset by an increase in online sales, which is obviously having an impact on retail real estate.”

Increased online sales have benefited warehouses, which in turn makes the industrial sector poised to perform well in 2013, Bull added. “It’s a good time to buy industrial and here’s why: We’ve had several quarters of positive absorption, and like the office market, we’ve had little-to-no new construction,” he said.
 Bull provided a wide range of projections for upcoming year.

Among his forecasts: demand for infill land for commercial development will continue to increase, distressed property sales will remain prevalent and investor demand for single-tenant, net-leased properties will remain high.

Medical Office Building, San Diego, CA
Healthcare and medical properties also will be much sought after by investors in 2013 and beyond, Bull noted. “Baby Boomers are getting older, they’re living longer and they have more active lifestyles,” he said. “Healthcare properties should see further cap rate compression and strong buyer demand in 2013.”

The entire “2013 Commercial Real Estate Market Projections” episode is available for download at

 The next “America’s Commercial Real Estate Show” will be available on Nov. 8 and will provide an in-depth update on the U.S. retail real estate market.

 “America’s Commercial Real Estate Show” is a national talk radio show about commercial real estate. New shows are available beginning every Thursday at the show website, Shows are also broadcast on AM stations, including Atlanta station Biz 1190 WAFS on Saturdays at 10 a.m. Show podcasts are available on-demand on iTunes and the show website.


Stephen Ursery
Wilbert Public Relations
Office: (404) 965-5026
Cell: (404) 405-2354

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