The general consensus seems to be that 2013 will be a year with increased investment in commercial real estate and a return to normalcy in the commercial real estate markets. Multi-family was a popular product type in 2012 and was very helpful in driving recovery. Multi-family is sure to continue to be a favored property type in 2013, but office and industrial properties are expected to be attractive asset classes as well. However, unlike multi-family and office, industrial properties are more likely to have environmental liabilities that need to be identified and managed appropriately.

Demand for warehouse space is hot in many areas of the West Coast, including in Seattle, Denver, and Los Angeles, as well as in places like Houston and Philadelphia. These locations are particularly attractive due to their strategic location near transportation hubs and terminals. Although there are some positive signs for retail space, continued growth is expected for eCommerce, and the requirement for more distribution facilities in strategic locations has many investors taking note. Modern distribution facilities will be needed to accommodate growing demands for the storage and shipment of goods bought and sold from online market places.

Unlike multi-family, which primarily encounter issues associated with suspect asbestos-containing materials, lead-based paint, radon, or perhaps off-site releases, industrial property types are more likely to have significant environmental challenges due to a history of tenant use. These uses can include the use of underground storage tanks (USTs) related to vehicle fleet fueling and the generation of hazardous wastes in association with manufacturing, among others. Managing environmental risk is an important consideration for investors looking at opportunities in industrial property in 2013.