Over $1 tln (EUR 668 bn) in large commercial property transactions were recorded globally in 2007. Real Capital Analytics, a US-based real estate researcher, said the findings in its Global Capital Trends report indicated that the commercial real estate marketplace is much larger than previously estimated.
Over $1 tln (EUR 668 bn) in large commercial property transactions were recorded globally in 2007. Real Capital Analytics, a US-based real estate researcher, said the findings in its Global Capital Trends report indicated that the commercial real estate marketplace is much larger than previously estimated.
The Americas accounted for $539 bn of the total of $1.04 tln in deals of over $10 mln, while Europe and the Middle East and Africa saw $318 bn worth of deals. About $180 bn of transactions were recorded in Asia, according to the report. Citing the lack of transparency in some markets and extrapolating for deals under the $10 mln threshold, the report said the total size of the market last year may have been closer to $1.5 tln.
Underlining the importance of the cross-border element in large deals, Real Capital Analytics said almost 70% of the 300 firms that acquired $1 bn or more of commercial property in 2007 were active buyers in several countries.
Property portfolio sales accounted for 30% of all sales in North America and Europe, but only 12% in Asia. Some $144 bn was spent in the Americas on entity-level transactions, involving the acquisition of an entire company and its property portfolio. Only $23 bn and $13 bn was spend on entity transactions in Europe and Asia respectively.
But the report said that the credit crisis could alter the balance between the continents. Warning that the credit crisis could reduce commercial real estate sales in the US and UK in particular, Real Capital Analytics said Asia may be the top performer in 2008.
Click on the link below to go to the website of Real Capital Analytics.
