Real Capital Analytics Reports Global Property Sales Top US$1 Trillion in 2007
13/02/2008 19:24
PR Newswire
NEW YORK, February 13 /PRNewswire/ --
- Record amount fueled by 114 cities exceeding US$1 billion in global
sales
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 US$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 US$1 trillion of significant property sales
in 2007 across 75 countries on five continents. Considering our research only
includes sales greater than US$10 million, the total size of the marketplace
may be closer US$1.5 trillion."
The report also identifies 114 cities that recorded more than US$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 US$1 billion of commercial
property sales, 48 are in North America, 35 are in Europe and 21 are
in Asia.
-- Office space was the most active property type, representing 32
percent of total sales, or US$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
in 2007.
-- Half of all land acquired by developers around the world last year was
located in China with US$50 billion in acquisitions, double the U.S.,
the next most active country.
-- Corporate users capitalized on investor demand for property globally
with US$88 billion worth of asset sales including US$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
www.rcanalytics.com
Press Contact: Dan Fasulo at +1-212-387-7103 or dfasulo@rcanalytics.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.
Web site: http://www.rcanalytics.com
Dan Fasulo of Real Capital Analytics, Inc., +1-212-387-7103, dfasulo@rcanalytics.com