Exceptional 4Q pushes Global Commercial Real Estate Investment Volumes to
$436B in 2012
Jones Lang LaSalle preliminary numbers show U.S. fiscal cliff tax concerns and
pent-up demand lifted 4Q volumes to end the year ahead of 2011
LONDON, CHICAGO and SINGAPORE, Jan. 10, 2013
LONDON, CHICAGO andSINGAPORE, Jan. 10, 2013 /PRNewswire/ --
oPreliminary global volumes beat forecasts to end 2012 at $436 billion, a
slight increase over 2011's $435 billion and a 36 percent increase over
oGlobal 4Q 2012 totals $141 billion compared to $100 billion for 3Q and
$119 billion for 4Q 2011.
oDirect real estate ownership is showing its attractiveness in a low-yield,
high-liquidity world with below trend economic growth prospects for 2013.
oThe "fiscal cliff" and pent-up demand pushes U.S. volumes 51 percent
higher quarter on quarter as vendors fret over capital gains tax increases
and the need to allocate capital, 34 percent up on 4Q 2011 and 11 percent
higher year on year. Canada and Mexico also have a stronger year in 2012
than in 2011, showing growth is across the Americas.
oAsia-Pacific has a consistent end to the year, but full-year volumes are
down slightly in 2012 at $92.5 billion compared to $98 billion in 2011
with slower economic growth in China effecting volumes in the second
oEurope beat expectations by matching 2011 in Euro terms but eight percent
down in US$ terms partly due to a weak Euro. The United Kingdom remained
the most active market in 2012 and there was increased activity in 4Q on
the continent with France, Germany and the Nordics seeing stronger ends to
oOn the back of this better-than-expected end to 2012, Jones Lang LaSalle
is estimating full year 2013 volumes will be between $450-500 billion,
with performance back ended following a similar pattern to 2011 and 2012.
Momentum will be maintained in the Americas with Asia Pacific expected to
improve and EMEA looking to record a similar performance to 2012.
Global real estate investment volumes in 4Q 2012 rallied, with US$141 billion
transacted over the quarter to lift the year's total preliminary volume to
$436 billion, according to Jones Lang LaSalle capital markets research from 60
countries. The real estate investment volumes in 2012 represented a slight
increase on 2011's $435 billion, and a 36 percent increase over 2010.
The strong quarter was attributed, in part, to a year-end rush of United
States investors seeking to allocate funds to avoid capital gains taxes from
the government's "fiscal cliff" crisis. U.S. volume rose 51 percent quarter on
quarter. Mexico, Canada, France, Germany and the Nordic countries also
finished the year strong.
Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle
said, "The surge in the final quarter of the year demonstrates once again that
real estate markets are well through the recovery phase of the cycle and are
now supporting year-on-year increases in transactional volumes. Based on this
evidence we anticipate that 2013 will be another one of growth with global
volumes set to be between $450-500 billion."
David Green-Morgan, Global Capital Markets Research Director said, "The
greater allocations to real estate from a number of institutional and private
equity groups are starting to have a real impact on the global real estate
investment market. The threat of higher capital gains taxes in the U.S.
triggered a wave of year-end transactions, but the underlying factor is the
attraction of real estate in a low-yield, high-liquidity environment. Despite
the improvement in values over the last three years globally, we are still 15
to 20 percent below the market peak. There remains a great deal of upside
potential, particularly in secondary markets which have remained subdued since
the financial crisis but are starting to attract investor interest given their
more attractive yields."
Notes to the Editor
Property types in the Global Capital Flows report include hotels, office,
industrial and retail. The numbers represented here are preliminary; the
final Global Capital Flows report for 4Q 2012 will be released in late January
What is Global Capital Flows?
Jones Lang LaSalle's Global Capital Flows analysis provides a set of data
designed to help investors understand how commercial real estate capital is
moving around the world. The findings are released quarterly, first in the
transaction volume analysis represented in this release, and secondly in a
broader quarterly report which will be issued in the following weeks. All of
the current Global Capital Flows data can be found in an interactive website
which also acts as a portal for media and clients to access Jones Lang
LaSalle's global capital markets research. Bookmark this site for the most up
to date global real estate data: - http://www.joneslanglasallesites.com/gcf
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 more than 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 2.1 billion square feet 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. For further information, please visit
SOURCE Jones Lang LaSalle
Contact: Heather Filkins, +1-312-228-2139, Heather.Filkins@am.jll.com or Katie
Sershon, +1-312-228-3127, Katie.Sershon@am.jll.com
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