Market activity may shift to smaller markets in 2013

While property managers across the company may see improvements in multifamily market and economic conditions next year, the majority of activity could come from smaller, non-primary markets.

This year should provide an improved commercial market, as more investors will look to purchase more property, according to a report from CoStar Group. This will likely won't increase in primary markets, but may actually become more common in secondary and tertiary markets around the country.

"Many of the public REITs are trading above NAV [net asset value], so they can acquire companies in transactions that are immediately accretive," Steve Goldberg, managing director and head of real estate investment banking at Baird, told CoStar Group. "At this point in the cycle, those companies that have been able to raise equity in the public markets have a significant cost of capital advantage."

Multifamily properties should continue to be a popular option in major markets, but this should also become more of a force in the lesser markets, the report added.

With a possible increase in multifamily presence in some smaller markets, property managers may experience an influx of lease documents, as more consumers take advantage of the increasing growth in the sector.