Global Commercial Property Investment Possible Rise to 25% for 2011

January 20, 2011 / Elizabeth Buckley, Commercial Property Analyst

A recent report from Jones Lang La Salle Inc, global commercial property investment might possible rise by 25 percent or about to $380 billion for 2011, after investors’ returning confidence created the most deals during the 4th quarter since 2007 peak. Commercial property investment volumes climbed to $759 billion at its peak in 2007, before the commercial property bubble burst, which helped triggered the 2008 global economic crisis.

Global Commercial Property Investment Possible Rise to 25% for 2011

The total amount of commercial property investment spent on warehouses, offices and shops rose by more than 50% to $316 billion in 2010, a 50% increase from of $209 billion— an eight-year low in 2009.

The 4th quarter of 2010 was the first time commercial transactions exceeded $100 billion in a three- month stage since 2007, according to an international 2nd-largest commercial real-estate broker.

Commercial property investment has declined globally in 2009 following the banks cut lending finances and companies lessen spending on offices.

The Europe and Americas showed the strongest recovery in 2010, with Brazil recorded about $3.4 billion, almost tripled than the last figures, the report said. About $759 billion of transactions or commercial property investment were completed, in the peak year of 2007.

Jones Lang managing director, Steve Collins said the Americas’ revival has mainly been strengthened by investors’ interest in core gateway metropolitans like Rio de Janeiro, San Francisco, New York, and Washington DC.

In UK, Europe’s largest market, 2010 volumes rose by 46 percent to $49 billion.

Major Asia Pacific commercial markets also recorded significant increase for the area’s commercial property investment in 2010.

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