Record amount fueled by 114 cities exceeding $1 billion in global sales
NEW YORK, Feb. 13 /CNW/ -- Real Capital Analytics (RCA), an independent
research firm focusing on the capital markets for commercial real estate,
today announced that worldwide acquisitions of commercial property surpassed
the $1 trillion mark in 2007. The landmark figure is reported in the inaugural
issue of Global Capital Trends, RCA's global capital investment report.
"The size of the commercial property marketplace is much larger than
previous estimates," said Robert M. White, founder and president of RCA. "Our
research has documented more than $1 trillion of significant property sales in
2007 across 75 countries on five continents. Considering our research only
includes sales greater than $10 million, the total size of the marketplace may
be closer $1.5 trillion."
The report also identifies 114 cities that recorded more than $1 billion
of commercial property sales. Other findings in the first issue of Global
Capital Trends include:
-- Of the 114 cities that recorded more than $1 billion of commercial
property sales, 48 are in North America, 35 are in Europe and 21 are in
-- Office space was the most active property type, representing 32 percent
of total sales, or $434 billion. Nearly 1.2 billion square feet (112
million square meters) of property changed hands last year, equivalent
to all of London, Tokyo and New York City combined.
-- Commercial property sales volumes in Asia could surpass those in either
Europe or the Americas in 2008.
-- The risk premium for property ranges from 20 to 350 bps. U.K. and Hong
Kong were considered the least risky investment locations with
capitalization rates averaging just above comparable government bonds
-- Half of all land acquired by developers around the world last year was
located in China with $50 billion in acquisitions, double the U.S., the
next most active country.
-- Corporate users capitalized on investor demand for property globally
with $88 billion worth of asset sales including $56 billion of sale-
leaseback transactions, a form of corporate finance.
"Some of the findings of this report are fascinating and the industry
will really benefit from this new level of transparency", said Steve Williams,
an international property consultant and former president of The Royal
Institution of Chartered Surveyors.
The sales tracked in Global Capital Trends include office, industrial,
retail, apartment and hotel properties as well as developable land for them.
RCA also notes the availability and reliability of property sales information
varies greatly by country and even within certain countries.
RCA is the first independent research firm to report on the global
property markets. The data is based on RCA's global transactional database
which is available to subscribers. RCA's data is widely used throughout the
capital markets in the U.S. and is now available globally.
A copy of the inaugural issue of Global Capital Trends is available at
Press Contact: Dan Fasulo at 212-387-7103 or email@example.com
About Real Capital Analytics, Inc.
Real Capital Analytics, Inc. (RCA) is an independent research firm
focused exclusively on the capital investment markets for commercial real
estate. RCA offers the most in-depth, comprehensive and current information
of transactional activity and capital flows in the industry. Formed in 2000,
RCA has offices in New York City, San Jose, Calif., and The Hague. In addition
to collecting transactional information for property sales and financings, RCA
interprets data including capitalization rates, market trends, pricing and
sales volume. The firm publishes a series of capital trend reports and offers
an online service that provides near real-time, global transactional market
information. For more information, visit: http://www.rcanalytics.com.
For further information:
For further information: Dan Fasulo of Real Capital Analytics, Inc.,
+1-212-387-7103, firstname.lastname@example.org Web Site: http://www.rcanalytics.com