LONDON, CHICAGO, SINGAPORE – 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 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, 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.
What is Global Capital Flows?
Jones Lang LaSalle’s Global Capital Flows analysis provides a set of data designed to help investors understand how commercial real estate capital in the aggregate is moving around the world. The data does not reflect Jones Lang LaSalle’s own business and is not indicative of Jones Lang LaSalle’s overall performance or the portion of the overall market in which Jones Lang LaSalle participates. The findings are released quarterly, first in the transaction volume analysis represented in this release, and secondly in a broader quarterly report which will be issued in the following weeks. All of the current Global Capital Flows data can be found in an interactive website which also acts as a portal for media and clients to access Jones Lang LaSalle’s global capital markets research. Bookmark this site for the most up to date global real estate data:http://www.joneslanglasallesites.com/gcf
Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2012 alone, Jones Lang LaSalle Capital Markets completed $63 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $60 billion in global investment sales and buy-side transactions, equating to nearly $240 million of investment trades completed every working day around the globe. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.
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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.
Contact: Heather Filkins