Here's looking forward to a prosperous 2014! What to expect for commercial real estate

2013 will go down as a stagnant year in commercial real estate. This situation was mostly due to the lack of confidence on the part of decision makers in conjunction with governmental uncertainty. A lack of effective and direct leadership has no doubt contributed to the stagnation that we witnessed throughout 2013. So what will we see from commercial real estate in 2014? Analysts and industry experts say the commercial real estate market can expect to see steady improvements. The reason we should expect steady improvements is due to the fact that national and local economies have finally rounded the corner on the recession recovery. In other words, things are looking up throughout the economy as a whole, and this, of course, includes commercial real estate. Strengthening Rents and Occupancy Rates Rents and occupancy rates have strengthened since the downturn across property types. We can expect the real estate recovery to gain momentum in 2014, although it should be noted that the recovery is likely to be slower than in past cycles. The end result is that it can be difficult to spot the signs of improvement until they are in full swing. Key Researchers Predict a Strong 2014 We are expecting solid momentum in 2014, but why? The momentum of 2014 will largely be attributed to four key factors: the weight of money flowing into the asset class, an improving lending environment and the heightened appetite for risk and investors' movement into secondary markets. Research experts at Jones Lang LaSalle's (JLL) recently issued a press release in which they ascertain high performance expectations for the commercial real estate recovery. The experts at JLL predict that global investment volume will grow 10% year-over-year to $550 billion in 2014 with the U.S. market looking particularly strong. In fact, the firm's top researchers believe the "global real estate disconnect" between buoyant investment markets and more cautious leasing markets that existed during 2013 is narrowing in the United States, as the nation's recovery broadly diversifies ahead of many of its global counterparts. The commercial real estate market has finally hit its stride. 2014 looks to be a promising year and one that will leave the stagnation of 2013 behind. "May all your troubles during the coming year be as short as your New Year's resolutions!" Here's looking forward to a prosperous 2014! Ron Koenigsberg is the president of American Investment Properties, Garden City, N.Y.