Signs of spring, but economic cold spell lingers
Date: 11.05.2009
Company: Jones Lang LaSalle
Interested in the health of the global real estate markets?
You now have it first-hand in Jones Lang LaSalle’s April Global Market Perspective. Our global executive team has weighed in on the key economic issues impacting real estate growth, including:
- Jones Lang LaSalle’s Global Real Estate Health Monitor, which analyzes the leading health indicators of global commercial property market activity, shows that most indicators continue to point down in the face of continued challenges.
- Although the broader credit markets appear to be improving, commercial mortgage-backed securities (CMBS) spreads remain at extremely high levels and there are few signs that lending to the real estate sector is improving.
- The lack of debt continues to hinder transaction activity around the world, although equity investors are beginning to become more active, particularly in markets that already have been significantly re-priced.
- Although global transaction volume remains limited, cash-rich investors—typically smaller institutions or private investors—have begun to emerge as buyers in several regions.
- The banking sector remains reluctant to force sales and there is growing evidence that banks are actively seeking equity and beginning to work through problem debt portfolios.
- In addition to consolidating their space requirements amid difficult operating conditions, tenants from around the globe are conducting more careful due diligence of landlords’ terms and are giving greater scrutiny to the capital or sponsor behind the landlord.
Our local and national experts can give you additional color on all of these things affecting commercial real estate.
gmp_april.pdf (PDF 170 kB)
