According to Jones Lang LaSalle's latest Global Markt Perspective study, the present situation of commercial real estate markets implies a temporary pause in the ongoing global recovery. With a more favorable view for the global economy, the feeling improves and the volume of commercial immobilien is projected to reach the high level in 2012 for the entire year. used cars for sale
Total global leasing and investment volumes declined by over 20% in Q1 2011 compared to Q1 2011. This drop might be caused by a sluggish reaction to the heightened caution of investors and employees around the end of 2011. Volumes were also hampered with the lack of investment goods accessible, a shortage of high quality leasing space and a lack of significant transactions.
"Though there is apparent ambiguity with the stated investment levels, there is still a strong transaction pipeline," said Jones Lang LaSalle's Arthur de Haast, Head of the International Capital Group. The quantity of capital invested in property is large and more inflows are expected from other asset types. The confidence of real estate investors returns and while some are still wary, others continue to implement their plans, even with lengthier transaction delays. On that basis, we anticipate that the amount of global real estate investment will remain around US$400 billion throughout the year, as it was in 2011. The greatest substantial rise in volumes is expected to be 10-15% higher in the Americas than in 2011."
A biased image of leasing
Office lease volumes declined by almost a 5th in the first quarter of 2012 compared with the first quarter of 2011. Corporate employees are always improving their balance sheets and reducing operating costs while being careful about transactions. In growing markets like Beijing and Sao Paulo, strong businesses' occupying demand offsets sluggish leasing volumes in big financial hubs like New York and London. Overall, this shows that worldwide office lease volumes in 2012 would be substantially lower than in 2011.
Bureau rent increase has the weakest since early 2010.
The Jone Lang LaSalle Global Office Index, which analyzes rental output in 90 key markets against a backdrop of decreased lease volumes, improved to 0.5% in Q1 2012 compared with 0.8% in Q4 2011. In the first quarter of 2012, rental growth fell about a third of the markets, the lowest rise since the first quarter of 2010.
America experienced the largest rent increase on a quarterly basis at 1.6 percent. The figure in Asia-Pacific is 0.2%. Rents in Europe have decreased for the first time since the fourth quarter of 2009 by -0.3%, from quarter to quarter. The most developing economies have been the BRICS nations, South East Asia and cities with significant linkages to the technology, energy and commodities industries. Beijing and Jakarta had a 49% rise in rental rates year-round, while Sao Paulo experienced a 30% rise and Moscow a 20% rise.
Jeremy Kelly, Director of Global Research at Jones Lang LaSalle and author of the Global Market Perspective report, said: "Despite a slow down in rental growth in last quarter, rent increases in most major offices are expected to occur in 2012, with some markets, such as Beijing, Sao Paulo, Toronto and San Francisco likely to see double-dimensional growth The vacancy rate in worldwide offices has fallen to 13.4 percent, the lowest in two years. The supply of high-quality space in the pipeline would remain restricted."
A resilient retail market supports the demand for storage.
Strong customer demand continues to increase in the retail and warehousing industries in Asia Pacific. The country's core retail and warehousing markets remained stable, despite continuous demand challenges in Europe. Improved corporate and consumer confidence in the US is helping to steadily restore warehouse leasing demand, boosting rental growth in 2012.
Diversifying into rapidly growing secondary and tertiary towns, international retailers are increasing demand for leasing in Greater China. This tendency will continue over the next ten years as China's leading cities give business real estate possibilities fueling market development and economic change.
Jeremy Kelly said, "Investors remain cautious in terms of the 2012 overall picture, and reasonably so, with economic uncertainties in the second half of 2011. Capital prices and primary returns remain stable, showing that a great deal of demand still exists in high quality core well-let properties. The global property picture is on track to a modest rebound for the remainder of 2012 without any economic disruptions."