Survey: Multifamily sector projected to continue boosting CRE market

The vaunted multifamily market is expected to see considerable development during 2013.

The vaunted multifamily market is expected to see considerable development during 2013, according to more than half of the executives of commercial real estate companies polled by KPMG.

The tax, audit and advisory firm's Commercial Real Estate Outlook Survey found 51 percent of executives noted a spike in multifamily building is likely next year for their companies. Behind this sector was industrial development, of which 14 percent of respondents noted their businesses should see a rise in construction during 2013.

While many facets of the CRE market remain high-performing, cutting costs to keep revenues steady was also cited by several of those surveyed as important for next year. The survey shows 46 percent of executives will be looking to cut back on energy costs and conduct energy-saving measures at their properties.

"Commercial real estate executives are seeing their margins and profits being squeezed, so increasing operational efficiency and reducing costs is a key focus," said Greg Williams, national leader of building, construction and real estate practice for KPMG.

The development of energy-efficient CRE is not only an interest to many executives, but also the federal government. The U.S. Senate's Committee on Energy and Natural Resources recently held a hearing on the financing of green buildings to reduce energy costs nationwide.

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