The outlook for the Twin Cities commercial real estate market is brightening, according to a recent survey by the University of St. Thomas.

The Minnesota Commercial Real Estate Survey, which was conducted by Herb Tousley, director of the university’s Shenehon Center for Real Estate, and Thomas Hamilton, associate professor of finance, took into account office, retail and industrial properties.

Fifty individual leaders in the development, investment and financing sectors of the commercial real estate market were called on to participate in the survey.

Respondents were generally optimistic that rental rates and occupancy rates will improve in the next two years and that financing for commercial real estate will be easier to obtain, improving the likelihood that more projects will be undertaken.

However, some respondents opined that increased rents and occupancies would contribute to higher net operating income, which could in turn increase land values and building costs and temper development.

“Though respondents were not predicting boom times ahead,” Tousley said, “there is an overall consensus that commercial real estate is starting to turn the corner toward better times in the Twin Cities.”

The composite index for the inaugural survey was 53.5, which indicates that participants expect general market conditions to improve slightly in the next two years.