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News Release

London, Chicago, Singapore

Global commercial real estate investment volumes at US$96bn in Q3 2012

Strong performance in major global property investment markets continues despite 8% total volume decline compared to same period in 2011

London, Chicago, Singapore, 24 October 2012 - Global investor purchasing activity remained steady in Q3 2012, with US$96 billion transacted over the quarter, according to Jones Lang LaSalle capital markets research from 60 countries.

Conclusions of the research are:

  • Q3 2012 direct commercial investment volumes were 8% down compared to busy Q3 2011, with robust activity in the major markets offset by weakness in a number of smaller and emerging markets;
  • YTD volumes are similar to those recorded in the first nine months of 2011: Americas saw US$126bn recorded in both years; Asia Pacific is at US$68bn in 2012, compared to US$71bn a year ago, whilst in EMEA YTD volumes are €75bn compared to €85bn in 2011;
  • Strong sustained demand for stable major markets off-setting lower interest in more volatile emerging markets;
  • Sectors such as residential and student accommodation attracting more global investor appetite as investors seek diversification and returns;
  • Full year 2012 global forecast remains at US$400bn with busy Q4 predicted in all regions.

Despite a slight fall on the US$106bn total recorded in Q2 2012, transaction levels have held up in the summer months of Q3. This is due to strong performance in established major markets in all three regions, such as the United States, UK, Germany and Australia.

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle said: “Whilst general sentiment continues to be constrained by the economic environment, transaction volumes have been robust overall for the last quarter due to high levels of interest in offices, retail and industrial real estate in major global markets. Investors have been placing capital in the major cities in these safer markets. These larger markets have more liquidity and lower risks and whilst returns might not be as attractive as emerging markets such as Brazil, India and China, these economies have slowed and market transparency is lower.”

David Green-Morgan, Global Capital Markets Research Director said: “Whilst investors are still being cautious and deals take longer to complete, there is a reasonably solid outlook for the rest of 2012. Financing for real estate transactions shows signs of improving in the US with CMBS issuance set to surpass the levels seen in 2011 and debt levels are steadily coming down, demonstrating that refinancing activity is taking place. Government quantitative easing and central bank policy activity has also improved global liquidity and confidence.”

Arthur de Haast added: “Q4 is historically the busiest quarter of the year and that will be no different this year for real estate transactions. Whilst global investors might be watching the upcoming US presidential elections with interest, we expect this to have limited impact on activity as proved the case with the recent London Olympics. Looking further forward we expect volumes to increase in 2013 and one trend to watch is the continued activity in alternative sectors, where our teams are currently extremely busy.”


About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 195 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management.

In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
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