Jones Lang LaSalle's (JLL) research experts have polished off the firm's crystal ball and it reveals a clear path to stronger performance expectations for commercial real estate in 2014. The firm's top researchers believe the "global real estate disconnect" between buoyant investment markets and more cautious leasing markets that existed during 2013, is narrowing in the United States as the nation's recovery broadly diversifies ahead of many of its global counterparts.
JLL's 2014 global viewpoints point out the surprising upsides in investment sales volume in 2013, largely attributed to the weight of money flowing into the asset class, an improving lending environment, the heightened appetite for risk and investors' movement into secondary markets. These factors are expected to continue to move the sector forward in the coming year with global investment volume growth of 10 percent year-over-year to $550 billion in 2014. The firm expects particularly strong gains on the U.S. horizon with further gains in more diversified investment across primary and secondary markets and sectors.
"We're seeing a tremendous weight of capital from a growing and diverse set of capital sources interested in a much wider range of U.S. real estate," noted Ben Breslau, Jones Lang LaSalle's Americas Research Managing Director. He describes the dynamics of today's investment and leasing markets around the world in this short video, "Investors feel more comfortable with the economic outlook, and they've shown a greater appetite for risk that has led to a 21 percent global increase in year over year investment volumes."
JLL is less exuberant on the global leasing market forefront. "Global leasing volumes for the full-year are expected to be flat, and in most markets and countries, 2013 is likely to turn out to be a weak year for rental growth," added John Sikaitis, Managing Director of Office Research for Jones Lang LaSalle.
Read more at The Wall Street Journal
No comments:
Post a Comment