There has been a worldwide recession. There will also be a worldwide recovery.
The July/August issue of the Jones Lang LaSalle Global Market Perspective provides us some interesting insights. Perhaps the pessimism that currently dominates the equity and commercial real estate markets needs to be tempered. The J.L.L. report points out that global commercial real estate investment volumes totaled US$130 billion at mid-year. The full year total is expected to reach US$300 billion. This would be a healthy 40-50% increase over 2009.
The report also points out that “the global economy continues to expand and growth is likely to be strong over the short-term. Economic policy is still expansionary in most major economies, corporate cash flows are strong, activity continues to be boosted by the turn in the inventory cycle and the world trade multiplier is working on the upside. The IMF (International Monetary Fund)recently raised its global growth forecast for 2010 to 4.6% which, after growth of 3% in 2008 and a contraction of 0.6% in 2009, would represent the biggest global economic expansion since 2007.”
To be sure, the recovery here in the U.S. is proceeding more slowly than we would like. Even so, commercial real estate investment was US$16.2 billion in the second quarter of 2010, 41% over the first quarter and 408% ahead of the same quarter last year.
Mick Gamache
No comments:
Post a Comment