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News release

New York, NY.

Office and Multifamily Assets Lead Transaction Surge Nationally according to Jones Lang LaSalle’s 2011 Spring Capital Markets Overview

Investment Sales transactions up 43 percent globally


NEW YORK, June 6, 2011 — High investment demand coupled with lack of supply is pushing cap rates down by as much as 200 basis points over the past year for top tier investment sales product in the strongest markets nationally, according to Jones Lang LaSalle’s 2011 Spring Capital Markets Overview released today.  Transactions for all product types nationally, led by office and multifamily, have increased 43 percent to $28 billion for the first quarter of 2011, compared to the first quarter of 2010, while globally investment volume has risen 42 percent during that same time period.  Jones Lang LaSalle’s report highlights investment sales and financings in New York City, across the United States and globally, and is compiled quarterly by the firm’s New York Capital Markets Group, led by Vice Chairmen Richard Baxter, Jonathan Caplan, Yoron Cohen and Scott Latham.

“Commercial real estate continues to rebound solidly across the globe, with the strongest 10 global investment markets accounting for more than a third of all transactions in the first quarter of 2011,” said Latham.  “Gateway cities such as London, Tokyo and New York City still lead most investors wish lists, as a lack of supply in these markets continues to push cap rates down.”

“The unemployment rate has now fallen to its lowest level since the first quarter of 2009, but a rapid rise in oil may affect business profit margins and consumer spending—potentially slowing the pace of recovery,” said Cohen.  “New York City shows continued improvement in employment and office market fundamentals, with first quarter Manhattan sales volume exceeding $3.5 billion—more than the entire year’s sales in 2009.”

Jones Lang LaSalle’s 2011 Spring Capital Markets Overview contains a detailed report about the market fundamentals. The full analysis can be downloaded here. 

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.  The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for its clients — whether a sale, financing, repositioning, advisory or recapitalization execution.  In the last three years, Jones Lang LaSalle Capital Markets completed more than $143 billion of transactions globally.  The firm’s Capital Markets team comprises approximately 1,500 specialists, operating in 180 major markets worldwide. 

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate.  The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate.  With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide.  LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $43 billion of assets under management.  For further information, please visit our website, www.joneslanglasalle.com.