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23. März 2012 
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Stronger economies offer bright spots in mixed outlook for 2012 global real estate
Despite the unknowns surrounding the debt crisis in Europe and the US, real estate occupiers are not sitting still. Cushman & Wakefield’s Global Economic Pulse presents a mixed forecast for real estate markets in the Americas, Europe and Asia Pacific, but stronger economies in specific markets around the world offer an improved forecast for real estate later in 2012.
“While we have been in the midst of challenging economic times, there is now a growing sense of constrained optimism, and we anticipate the global economy to strengthen during the second half of 2012,” said Glenn Rufrano, President and Chief Executive Officer of Cushman & Wakefield.
High volumes of office leasing activity over the past 12 months have shown that many occupiers are not being deterred by a period of slower growth.
“We have seen strong leasing activity as many organizations recast their real estate portfolios and strategies in preparation for the next expansionary economic cycle,” said Maria Sicola, Executive Managing Director of Research for the Americas at Cushman & Wakefield.
Americas: Better Times Ahead
The entire Americas region experienced a slowdown in 2011 as the European and US debt crises caused businesses and investors to become more cautious, and dramatically slowed the pace of growth in the US – the region’s main driver. However, the underlying fundamentals are pointing to a brighter future in 2012.
“The main drivers of growth – low interest rates, pent-up demand, balance-sheet improvement and healthier labor markets - are all still very much in place,” said Ken McCarthy, Senior Economist and Senior Managing Director of Research for Cushman & Wakefield.
The improving economic environment in the Americas is also expected to lead to healthy leasing fundamentals in the commercial real estate market. US office and industrial markets have been characterized by rising demand and limited supply. Investment sales in the Americas were up 51 percent in 2011, and improving fundamentals coupled with a still-healthy investor appetite for real estate should lead to healthy growth in the region, with activity in the US forecast to increase by 25 percent.
“While we have been in the midst of challenging economic times, there is now a growing sense of constrained optimism, and we anticipate the global economy to strengthen during the second half of 2012,” said Glenn Rufrano, President and Chief Executive Officer of Cushman & Wakefield.
High volumes of office leasing activity over the past 12 months have shown that many occupiers are not being deterred by a period of slower growth.
“We have seen strong leasing activity as many organizations recast their real estate portfolios and strategies in preparation for the next expansionary economic cycle,” said Maria Sicola, Executive Managing Director of Research for the Americas at Cushman & Wakefield.
Americas: Better Times Ahead
The entire Americas region experienced a slowdown in 2011 as the European and US debt crises caused businesses and investors to become more cautious, and dramatically slowed the pace of growth in the US – the region’s main driver. However, the underlying fundamentals are pointing to a brighter future in 2012.
“The main drivers of growth – low interest rates, pent-up demand, balance-sheet improvement and healthier labor markets - are all still very much in place,” said Ken McCarthy, Senior Economist and Senior Managing Director of Research for Cushman & Wakefield.
The improving economic environment in the Americas is also expected to lead to healthy leasing fundamentals in the commercial real estate market. US office and industrial markets have been characterized by rising demand and limited supply. Investment sales in the Americas were up 51 percent in 2011, and improving fundamentals coupled with a still-healthy investor appetite for real estate should lead to healthy growth in the region, with activity in the US forecast to increase by 25 percent.
