According to a report published by Jones Lang LaSalle Incorporated (JLL), a leading real estate investment trust (REIT), global commercial real estate (CRE) sales in fiscal 2010 second quarter doubled from the year-ago period to $66 billion, showing signs of recovery.
The report also unearthed that global CRE sales totaled $130 billion during the first half of 2010, and are forecast to reach about $300 billion for the entire fiscal year, representing a 50% improvement from 2009. Although the trading volumes in the CRE market have increased significantly year over year, it has yet to achieve the transaction volumes recorded before the financial crisis had hit the globe.
The Jones Lang report further revealed that CRE sales during the quarter varied considerably across geographical locations. The Asia Pacific region reported CRE sales of $15 billion -- a 34% dip compared to first quarter 2010, with declines in transaction volumes in Japan, China and Australia, but partially offset by Hong Kong and Taiwan.
The decrease was primarily driven by strict regulations imposed by local governments to cool the overheated property markets. However, the second quarter sales of the Asia Pacific region increased 21% compared to the same period in the previous year.
The Jones Lang report noted that CRE sales during the quarter in the Europe, Middle East and Africa (EMEA) region increased 15% sequentially from the first quarter to $29 billion. The U.K. accounted for over 40% of the total transaction volume of EMEA, with investment sales in London hitting nearly $5 billion.
In the Americas, transaction volume increased sharply by 51% from first quarter 2010 to $21 billion. The Jones Lang report, however, noted that sequential quarterly growth was comparatively higher in Canada and Brazil than in the U.S.
Jones Lang provides corporate, financial and investment management services to corporations and other real estate owners, users and investors worldwide. The company operates as a single-source provider of real estate solutions with a broad range of real estate product and services, and an extensive knowledge of domestic and international real estate markets.
Jones Lang faces stiff competition from international, regional and local players in the market due to which it has to continually invest in value drivers that act as key differentiators. Consequently, the company is under severe stress to maintain its profitability. We maintain our Neutral rating on Jones Lang with a Zacks #4 Rank, which translates into a short-term Sell recommendation.
Read the full analyst report on "JLL"
Zacks Investment Research
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The Jones Lang report further revealed that CRE sales during the quarter varied considerably across geographical locations. The Asia Pacific region reported CRE sales of $15 billion -- a 34% dip compared to first quarter 2010, with declines in transaction volumes in Japan, China and Australia, but partially offset by Hong Kong and Taiwan.
The decrease was primarily driven by strict regulations imposed by local governments to cool the overheated property markets. However, the second quarter sales of the Asia Pacific region increased 21% compared to the same period in the previous year.
The Jones Lang report noted that CRE sales during the quarter in the Europe, Middle East and Africa (EMEA) region increased 15% sequentially from the first quarter to $29 billion. The U.K. accounted for over 40% of the total transaction volume of EMEA, with investment sales in London hitting nearly $5 billion.
In the Americas, transaction volume increased sharply by 51% from first quarter 2010 to $21 billion. The Jones Lang report, however, noted that sequential quarterly growth was comparatively higher in Canada and Brazil than in the U.S.
Jones Lang provides corporate, financial and investment management services to corporations and other real estate owners, users and investors worldwide. The company operates as a single-source provider of real estate solutions with a broad range of real estate product and services, and an extensive knowledge of domestic and international real estate markets.
Jones Lang faces stiff competition from international, regional and local players in the market due to which it has to continually invest in value drivers that act as key differentiators. Consequently, the company is under severe stress to maintain its profitability. We maintain our Neutral rating on Jones Lang with a Zacks #4 Rank, which translates into a short-term Sell recommendation.
Read the full analyst report on "JLL"
Zacks Investment Research
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