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Investor Confidence Blows East, Not West

NEW YORK CITY-The outlook for sales and leasing grew brighter in Q3, but US professionals are less optimistic than their Asian counterparts, says a RICS survey.

By Paul Bubny | Updated on November 09, 2009

NEW YORK CITY-Investor concerns about the outlook for real estate in the Americas appear to be lightening up compared to three months ago, say respondents to the latest RICS Global Commercial Property Survey, distributed here by RICS Americas. However, that upsurge in confidence is lagging in the US as compared to Asian markets, the quarterly survey finds.

Just 24% of US professionals expect investors to hold off putting their money into commercial property, compared to the second quarter’s 43%, according to the survey. The contrast is even sharper when drawn against the fourth quarter of 2008, when 92% of respondents said they didn’t expect investors to budge.

In Asian markets, though, the outlook is considerably more upbeat about both leasing and investment sales. Sixteen percent of Hong Kong respondents, for example, expect rents to rise during Q4 2009, compared to 67% surveyed in Q2 who expected further downward pressure. Most US and Canadian respondents, by contrast, expect tenant demand to remain weak in Q4, while their counterparts in South American markets such as Peru are considerably more bullish.

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