By
James Pitchon on Nov 19, 2009 in
Research
Briefing Points
The 3Q 2009 CBRE Global MarketView reports on the economic recovery and its implications for commercial real estate.
Summary
Clearly, a synchronized downturn is not being followed by a synchronized recovery. Regions and countries are experiencing widely divergent trends.
The recovery is being led by Asia, with Latin America in second place. Europe and North America, together representing about 50% of world GDP, will lag the emerging markets and temper the recovery’s pace.
Investors are just beginning to look for good deals with quality properties—the most sought-after assets because of their risk profile.
Pricing for quality assets is showing some uptick in both Asia and Europe, and particularly in London. It is not clear that this activity reflects the “bottom,” but a number of purchases can be called “good buys” by most standards.
While values are rising in anticipation of recovery and based on opportunities, property market fundamentals are still deteriorating across the globe. The CBRE Global Office Rent Index shows rents falling by about 2%, quarter over quarter. The market is certainly close to “bottom,” and the worst does seem to be behind us.
Download full report
By: Nick Axford, Andrew Ness, Kevin Stanley, Raymond Wong and Raymond Torto
About the Author
James Pitchon is an Executive Director of CB Richard Ellis (Thailand) Co., Ltd. He has been responsible for the co-ordination of more than 1,000 multi-national corporation property transactions in Thailand over the last nineteen years. He is also a board director of CB Richard Ellis (Vietnam) Company Limited, CB Richard Ellis (Cambodia) Company Limited and the BCCT. He is a Member of the Royal Institution of Chartered Surveyors (MRICS).
