LONDON-A recent report by locally based property consulting group RICS shows that the current correction in the North American economies is expected, but that the commercial markets are still sound. According to the Q2 RICS Global Commercial Property Survey, most markets around the world still remain “robust.”

The survey is a quarterly guide to the developing trends in commercial property investment and occupier markets around the world. The information collected is from leading international real estate organizations, local firms and other property professionals.

The report indicates that the majority of the countries surveyed witnessed positive growth in occupier and investment demand. The US market is continuing a gentle recovery, as the South American market continues to demonstrate relative strength.

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The report was released before the Dow Jones Industrial average dropped more than 500 points Thursday, and fell another 221 points this morning before rebounding following a better-than-expected jobs report from the Labor Department. However, Simon Rubinsohn, chief economist with RICS, said the results of this expected “soft patch” in the economy is not yet impacting commercial real estate.

“Interestingly, it looks as though commercial property markets around the world remain strong, regardless. China, in particular, has proven remarkably resilient in the face of the introduction of a series of measures designed to cool the market. Capital value and rental expectations remain buoyant in much of the world indicating a continuing level of optimism. That said, the tentative recovery in the US, visible in the previous set of results, already appears to be faltering and it is noticeable that the momentum in the Indian real estate market seems to be slackening."

DALLAS-Though the REIT's RevPar was up by 7.2%, concerns centered on a $1.4-million FFO loss and an $87.5-million equity raise.

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