Miami, FL – November 19, 2012 – Re-assessing the pace of recovery and revealing opportunities for strategic returns on investment were the themes at the “Outlook 2013: Opportunity Amid Uncertainty” market forecast summit, held Friday, November 16 by CBRE at the Loews Hotel in Miami Beach. More than 500 industry professionals attended to discuss expectations for the 2013 commercial real estate market with regard to investments, leasing, development and financing for office, industrial, retail, multifamily, and hotel product throughout the state of Florida.
“The summit was a very valuable and informative program. Our professionals are confident in the business and investment outlook for 2013,” said Mary Jo Eaton, Executive Managing Director, Florida, “We are honored that our clients entrust CBRE Florida with their assets.”
CBRE Head of Americas Research, Asieh Mansour, PhD, led with captivating projections for the global economy. Within the U.S., rent growth is eminent though acceleration varies by product type. Multifamily and hotels are below natural rates of vacancy (5%–6% for multifamily, 34%–38% for full service hotels), at 4.6% and 33.7% vacancy by end of third quarter 2012. With these two products leading a modest recovery cycle toward maturation, they are followed by CBD office properties and industrial warehouse/distribution space, which are also in the expansion cycle; suburban office is just beginning to move past stabilization, and finally, industrial flex and retail are still in moving toward stabilization.
Most importantly, real estate continues to outperform indices of annual returns for government bonds, equities, CPI, and 90-day T-Bills. REITs and Real Property show more than 12% annualized returns over a one-year period, and 10.3% and 8.3%, respectively on a 10-year outlook. Comparatively, government bonds are at 8.3% at the one-year projection and 5.4% at a 10-year projection. Equities, CPI and T-Bills are projected to stay well below 5.5% for both near- and long-term returns.
CBRE President for Capital Markets Americas region, Chris Ludeman, moderated a discussion with five CBRE industry leaders on Florida’s investment properties capital markets climate. Michael Strober of Tampa (debt & equity), Christian Lee from Miami (industrial & office), Shelton Granade from Orlando, Robert Given from Ft. Lauderdale (both multifamily) and Dennis Carson in Miami (retail), weighed in on the impacts of politics, debt and rental rates on investing in Florida commercial real estate.
A focused discussion on office leasing markets was led by Ed Schreyer, CBRE Executive Managing Director for Agency Brokerage in the Americas region. CBRE panelists, Diana Parker from Miami, Bill Obregon from Tampa, John Gilbert from Orlando, and Oliver Barakat from Jacksonville described how government incentives, reduced floor plan requirements, and industry-specific growth will shape tomorrow’s office markets. A constraint on Class A product throughout the state is already pushing rates up in some markets and encouraging build-to-suits, many fitting a new ‘collaborative’ workspace setting, and almost all new development constructed and operated to meet high energy-efficiency standards.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.