A report from a major international accounting and consulting firm, Deloitte, the Asia Pacific region and Australia leads the global economic recovery in commercial real estate investment, while in the United States; the lights of hope are just showing recently.
The company’s 2011 Commercial Real Estate Outlook found out that the decline of the United States commercial real estate investment market has only just in progress to level-up, which suggested an early stages of resurgence may be imminent.
According to a partner from Deloitte Real Estate, Australia has had a shorter and shallower dip with lesser vacancies, and signs that rental resurgence and commercial real estate investment will be quicker are there, unlike the United States.
In Deloitte’s report, in 2007, commercial real estate investment and commercial property reached its peak when assets worth $US1.22 trillion are sold. But in 2009, just two years later, the total value of transaction and commercial real estate investment is only $US402 billion, slashed by about two-thirds.
But, global sales volumes are improving this year.
John Talbot, managing director of investments from Jones Lang LaSalle stated this week that temporary figures for 2010 shows a 25-30% surge in transaction amount in Australia, which is worth about $10 billion, but its is still far from 2007’s peak for about 16 billion of property.
In the Asia Pacific region, according to the report, its progress and recovery started in 2009 and has surfaced as the leading region for commercial real estate investment, while the United States and other regions lingers on the decline path.