Jones Lang LaSalle’s preliminary numbers
show direct investment volumes reached US$125 billion in Q3; Real-time
commercial real estate news now available at The Investor
LONDON,
CHICAGO, SINGAPORE, Oct. 7, 2013 – Global commercial real estate markets
continue to exceed expectations in 2013 as preliminary transaction volumes in
the first three quarters of 2013 are up 16 percent over the same time period in
2012, according to Jones Lang LaSalle Capital Markets research, which spans 60
countries and more than 130 cities worldwide. Preliminary direct commercial
real estate investment volumes in Q3 2013 reached US$125 billion globally, up
three percent over Q2 2013 and up 25 percent when compared to Q3 2012.
Global
volumes have now been above US$100 billion for six consecutive quarters and
this is expected to continue into the traditionally strong fourth quarter. In
light of this positive trend in activity, JLL has updated its 2013 projected
transaction volumes to $475-500 billion, from $450-500 billion, with the final
outcome likely to be closer to the upper limit.
The
positive transaction volumes should encourage investors as they gather at the
international property and investment trade fair, ExpoReal, in Munich this week
and will make headlines as JLL launches its global edition of The Investor, an
online and mobile app news source providing real-time commercial real estate
news to asset buyers and sellers around the world.
Arthur
de Haast, Lead Director International Capital Group at JLL said, “Global
transactional volumes continue to be positively influenced by investors looking
outside their home markets for opportunities. With the improving levels of risk
appetite and a more supportive economic environment, investors are more
comfortable looking at opportunities across the spectrum both in terms of
location and sectors.”
Other
highlights include:
- All three regions are ahead of this time last year with continued strong appetite for prime markets with only Asia Pacific seeing a pullback in Q3. The Americas saw a 15 percent rise in transaction volumes in Q3 compared to Q2 2013, reaching US$60 billion (up 35 percent year-on-year); EMEA also recorded strong growth reaching US$42 billion, a 27 percent year-on-year increase in volume. Asia Pacific volumes are up just one percent in Q3 2013 over the same time period in 2012, reaching US$23 billion. That’s down 30 percent from Q2 to Q3.
- Year to date, the bigger countries continue to perform well with Australia (up 13 percent), China (up 10 percent), Japan (up 64 percent), the United States (up 21 percent) the United Kingdom (up 10 percent), France (up 24 percent) and Germany (up 35 percent) but increasingly transactional activity is spreading out from the prime cities, into more regional centres and secondary assets in the larger cities.
David
Green-Morgan, Global Capital Markets Research Director at JLL concluded, “With
the U.S. Federal Reserve and other central banks around the world content to
provide accommodative monetary policy for the next few quarters at least, the
prospect of higher funding costs has dissipated. This will continue to provide
support to transactional volumes, which combined with an increase in institutional
allocations to the sector is the reason why we are confident that full year
volumes will approach and may even exceed US$500 billion.”
The
preliminary global capital flows volume will be featured prominently on JLL’s
global edition of The Investor, delivering up-to-the-minute, customized,
multimedia news updates on deals, industry trends and insight from real estate
leaders. To provide a first-mover competitive edge, The Investor has a
geo-location detection feature, releasing global news and tailored content to
users based on their current region so that they can stay updated on
transactions and trends relevant to their market.
