Global Commercial Real Estate Transactions Continue to Exceed Expectations

The global commercial real estate market has once again exceeded expectations, outperforming the previous quarter for the sixth consecutive quarter.

Jones Lang LaSalle Capital Markets research confirms preliminary transaction volumes in the first quarters of 2013 are up 16 per cent over the same period in 2012.

The report, which spans 60 countries and more than 130 cities, including London, Chicago, and Singapore, revealed direct commercial real estate investment in Q3 2013 reached US$125 billion globally - up 3 per cent over Q2 2013 and up 25 per cent over Q3 2013.

This positive trend in activity is expected to continue into the traditionally strong fourth quarter.

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.”

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.”