JLL: Global Investment Down 41%

CHICAGO-An August report from Jones Lang LaSalle shows global commercial property transaction volumes of $236 billion in the first half of 2008 were 41% below the record level for the same period last year. But despite the lower volumes, the report says the trend toward globalization of real estate ownership was maintained, with cross-border investment activity accounting for almost 45% of total transaction volumes.

“The fall in volumes was driven by global credit conditions which made debt both less available and more expensive,” says Tony Horrell, JLL’s CEO European Capital Markets. “As a result, many purchasers are unwilling or unable to transact at prices seen in 2007, while vendors are unwilling to reduce expectations. This has caused a stand-off between buyers and sellers, particularly for large lot sizes.”