Sound Reasons to Invest in Commercial Assets, JLL Says
April 27, 2011 8:16 PM EST
There are still a number of "sound reasons" for investors to be looking at the opportunities available to them within global commercial property markets, it has been suggested.
Paul Guest, Jones Lang LaSalle's global capital markets research director, said that current perceived inflation hedge, supply shortages, appealing risk-adjusted returns, still-attractive pricing and a pick-up in debt issuance and securitisation are ensuring that the sector remains attractive.
His comments follow a report from the consultancy that global direct commercial real estate investment volumes totalled just under USD 90 billion in the first quarter of 2011. Jones Lang LaSalle predicts that a further USD 290 to 310 billion in direct commercial real estate transactions will be recorded in the remainder of this year.
It comes after CB Richard Ellis reported that investment in European retail property has hit its highest level for three years, with the asset class clearly outperforming other sectors.
The firm said that total investment in retail property rose four per cent quarter-on-quarter to reach EUR 12.2 billion.