Investment activitymay improve this year

Commercial property investment may improve this year.

The level of commercial real estate investment could improve in 2013, as there may be strengtheningconditions, overall. This could help improve sentiment from many commercial property managers entering the new year.

Market recovery for commercial property sectors has gone well compared to the residential market, according to Investor’s Business Daily. Much of this can be credited to higher price levels, as well as impressive returns on investment. This could encourage further investment for the foreseeable future. Many industry experts expect returns to be 8 percent or higher in the coming years. Capital gains, as well as net operating income may have an effect on the market.

“It’s hard to find good-yielding low-risk investments right now so capital wants to be in this asset class,” Dan Fasulo, managing director of Real Capital Analytics, told the news source.

Others also expressed positive impressions of market investment in the coming months. According to Jones Lang LaSalle, last year should have an investment improvement of 10 percentfrom 2011.

This figure may jump to as much as 20 percent this year compared to last year’s gains, CoStar Group explained, citing the report.

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