NAPLES, FL—As the number of distressed commercial real estate properties in the Southwest Florida market continues to decline, assets are resetting to new market values. GlobeSt.com caught up with Jim Garinger, senior managing director and principal at Colliers International Southwest Florida, to learn more about this trend.

GlobeSt.com: In which asset classes are market values most quickly trending up in Southwest Florida?

Garinger: Southwest Florida's multifamily led the way into the downturn several years ago and it was also the first asset class to sell out at distressed values. The improving economy has resulted in more people looking to rent apartments, which has increased multifamily occupancy and contributed to a strengthening market value.

In addition, investor demands for multifamily has created an increase in value for these properties, which contributes to rising market prices for those assets. It is also worth noting that we have started to see retail assets begin a push toward new market values, especially as we go through Southwest Florida's busiest tourist season.

GlobeSt.com: What's going on with distressed industrial and office assets in Southwest Florida?

Garinger: Distressed industrial assets have been significantly absorbed, and in a short period of time. As the Southwest Florida market continues to improve, users like tradesmen and light manufacturers will snap up the few remaining distressed industrial properties to take advantage of the lower sales costs and lock in lower monthly mortgage costs for their future.

Meanwhile, we see office trailing behind the other asset classes in clearing out the distressed properties. Tenants requiring more efficient use of space will largely drive a recalibration of market values for office assets as we move forward.