2013 Real Estate Market Looking Up

By Roz Peterson

The 2013 Real Estate Market is looking up as - The National Association of Realtors forecast that things are going in the right direction! Expect to see gains in new and existing home sales. Commercial real estate is seeing vacancy drop and rent growth across all property types. They also foresee job growth by 2 million this year and 2.6 million next year. This is all good news for our country including a projected 3% increase in GDP by 2014. These national trends are also reflected in our state of Minnesota.

Markets vary across the Twin Cities metro as noted by this chart:

Submarket Vacancy Ranking-Retail

Rank Submarket Vacancy Rate YOY Basic Point Change Effective Rents YOY % Change
1 West Hennepin County 6.1% -40 $18.35 -.3%
2 Washington County 6.4% 30 $13.85 .8%
3 Dakota County 8.7% -40 $12.37 .2%
4 Anoka County/SE Sherburne 8.9% 80 $11.17 .3%
5 St. Paul 10.1% 40 $13.86 .7%
6 E Hennepin Cty/Minneapolis 10.7% -10 $16.37 .7%

The bottom line is that markets vary not only on rent but availability. It is important to use a qualified broker like Cerron to help with your real estate needs. Interest rates are projected to remain low while unemployment is high. SBA has proven to be a great lending tool option for owners. 1031 exchanges have not been affected by current legislation and remain a viable alternative to avoid the increased capital gains tax. Call us at 952-469-9444 or email me at rozp@cerron.com to answer any questions you may have. 2013 Real Estate Market is looking up indeed!

    
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