Global commercial property has optimistic outlook for 2014Global commercial property has an optimstic outlook for 2014, according to Jones Lang LaSalle.
The firm's latest Global market Perspective Report argues that there is "good reason to be optimistic" about commercial real estate next year, as the global economy improves, bolstering business confidence and increasing capital expenditure.
Indeed, "virtually all" major markets are recording sales volume growth, notes JLL, while the weight of money, combined with an improving lending environment and heightened risk appetite, lead the firm to predict even more increases in the next 12 months.
Indeed, "barring external shocks", Jones Lang LaSalle forecasts 2014's transactions to reach levels that could be just 20 to 25 per cent below the boom years of 2006 and 2007.
In terms of investor activity, Q3 volumes exceeded expectations, adds the report, with transactions soaring 41% year-on-year. Investment is now on track to surpass US$500 billion for full-year 2013; with a further 10% growth in 2014.
"The global leasing markets are less exuberant, however. While corporate occupier sentiment has improved markedly over the last quarter, companies remain vigilant and sentiment is still prone to external shocks. Nonetheless, momentum is building in the U.S, where the office leasing market has the potential to pick up substantial speed in 2014 and 2015."
Much of Continental Europe and Asia Pacific is still subdued, though, but leasing activity is expected to gradually improve in both regions.
The top global market performers are Jakarta, Tokyo, San Francisco and Dubai, all of which are projected to show strongest office rental growth in 2014.
In the retail industry, strong demand from the luxury sector has boosted values in key international retail hubs, while the investment market for hotels is buouyant.
The US residential apartment market holds strong, while restrictions in many Asian markets, designed to cool them down and avoid over-heating, have successfuly started to slow sales.