Increasing Global Equity Drives Commercial Real Estate Transaction Volumes in First Half of 2014

Increasing Global Equity Drives Commercial Real Estate Transaction Volumes in 
First Half of 2014 
Preliminary Volumes Up 27 Percent Over H1 2013 
-- 07/09/14 --  Increasing allocations into commercial real estate in
the first half of 2014 is driving transaction volumes higher across
much of the globe, with direct commercial real estate transactions
reaching US$294 billion, up 27 percent over the same period last
year. Due to the stronger-than-expected performance in both the
Americas and Europe, as well as the steady volumes in Asia Pacific,
JLL (NYSE: JLL) is revising its earlier full year transaction volume
forecast from US$650 billion to US$700 billion.   
"Global commercial property investment markets continue to perform
well spurred on by improving economic data and occupational
fundamentals," said Arthur de Haast, Lead Director International
Capital Group at JLL. "While we are approaching transactional levels
last seen in 2006, the nature of this cycle is very different. The
return of fully functioning debt markets over the last 12-18 months
has certainly played a part in improving investor sentiment, but the
real driver of these increases in transactional volumes is more and
more equity targeting direct commercial real estate." 
The Americas
 The greatest growth in global transactional volumes is
in the Americas, where volumes have surged by 43 percent in the first
half of 2014 compared to last year. The United States continues to be
the catalyst, but this quarter it was joined by Mexico and Brazil
where industrial and retail portfolio transactions have pushed H1
volumes already well above 2013's full year totals for both
 European volumes are not far behind in terms of
growth with transactions in the first half 34 percent higher than
last year, while Q2 2014 is 50 percent higher than a year ago. An
increase in transactional volumes across the region is supporting
growth in the core markets. Southern Europe, the Benelux and Central
and Eastern Europe are all more than 50 percent higher than in the
first half of 2013. The growth in transactions is broad-based, with
the core markets of the United Kingdom, France and Germany also 30
percent higher over the first half of 201
Asia Pacific
 In Asia Pacific, transactional activity has increased
following a quiet start to the year. The US$32 billion recorded is in
line with Q2 2013 and means H1 volumes are now just 8 percent below
those from H1 2013. Japan has been the star performer in recent
quarters, but in Q2 investors reduced their rate of buying following
a strong start to the year. Australian volumes were boosted by a
large one-off REIT privatization while China and South Korean
transactions have recovered from a weak Q1.  
"New sources of capital from emerging economies have grabbed many of
the headlines in the last few years. But what is really pushing
transactional markets higher currently is the increasing allocations
towards direct real estate from the traditional sources of capital;
pension funds, endowment capital, private equity, combining in many
instances with the new sources to acquire assets. While short and
long term interest rates globally continue to hold at historically
low levels, we see direct real estate as continuing to attract
capital," concluded David Green-Morgan, Global Capital Markets
Research Director at JLL. 
Notes to Editors: 
1. 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 Q2 2014 will
be released in late July 2014.  
2. 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:  
About JLL  
JLL (NYSE: JLL) is a professional services and investment management
firm offering specialized real estate services to clients seeking
increased value by owning, occupying and investing in real estate.
With annual fee revenue of $4 billion, JLL has more than 200
corporate offices and operates in 75 countries worldwide. On behalf
of its clients, the firm provides management and real estate
outsourcing services for a property portfolio of 3 billion square
feet and completed $99 billion in sales, acquisitions and finance
transactions in 2013. Its investment management business, LaSalle
Investment Management, has $48.0 billion of real estate assets under
management. JLL is the brand name of Jones Lang LaSalle Incorporated.
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