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News release

CHICAGO, LONDON, SINGAPORE

Global Commercial Real Estate Investment Tops 2014 with Record-Breaking Quarter

JLL reports Q4 transaction volumes up 28 percent compared to Q3


CHICAGO, LONDON, SINGAPORE, Jan. 12, 2015 – JLL reports global direct commercial real estate investment transaction volumes hit a new record high in the final quarter of 2014.  Volumes in the fourth quarter reached US$218 billion, bringing the preliminary full year volumes for 2014 to US$700 billion. This activity represents an 18 percent rise compared to 2013 and is almost in line with 2006 activity. The numbers from Asia Pacific and EMEA top the headlines, with both regions up 40 percent in Q4 compared to Q3.  The Americas activity is up 15 percent over last quarter.

Arthur de Haast, Lead Director, International Capital Group, JLL said, “The Americas and Europe have been the driving forces of global growth, with economic recovery in the U.S. and U.K. as key components.  Asia Pacific had been lagging for most of 2014, but a strong final quarter brought it in line with 2013 levels.”

Steve Collins, JLL’s Managing Director, International Capital Group, added, “Despite more uncertainty in the world than a year ago, we expect direct real estate to continue to hold its appeal in a low interest rate environment.  We are forecasting transactional volumes between US$730 and US$750 billion in 2015, which would be the sixth consecutive year of volume growth.”

Regional overviews
The Americas continued to lead performance globally with volumes of US$298 billion in 2014, which is 24 percent higher than 2013. This number was boosted by another strong final quarter in the U.S. where volumes reached almost US$85 billion, 6.0 percent higher than the final quarter of 2013.  The United States, Brazil and Mexico have maintained good transactional momentum throughout the year while Canada is slightly down over 2013 performance.

European volume growth almost matched the Americas rising 21 percent to US$267 billion for the full year.  While the biggest markets of the United Kingdom., France and Germany recorded solid growth of 17 percent, some of the smaller markets saw considerably higher growth, with the Nordics (up 41 percent), Central and Eastern Europe (CEE) (up 51 percent), Benelux (up 61 percent) and Southern Europe (up 70 percent). 

A stronger than expected final quarter in Asia Pacific has brought the region back in line with 2013 activity.  The US$42 billion recorded in Q4 is the highest quarter on record for Asia Pacific, almost 40 percent higher than Q314. The region, was boosted by a surge in activity in China and South Korea; both markets that had lagged the region during 2014.  Full year 2014 volumes are at US$128 billion with Australia (up 17 percent) and Japan (up 4.0 percent) up on 2013 but China 20 percent lower, despite the strong final quarter.

JLL’s Global Capital Markets Research Director David Green-Morgan noted, “After such a strong run up in transactional activity over the last six years, 2015 growth looks may be slightly more subdued as investors weigh their next moves.  The global economy faces new challenges with changing monetary policy in the U.S., Euro Zone and Japan, pivotal elections in the U.K., Spain, Canada and Greece and a Chinese economy coming to terms with lower GDP growth.  However, the macro drivers of investment into real estate remain, fund raising was robust in 2014, institutions continue to allocate more money to direct real estate and emerging economies are relaxing the rules on the export of capital.” 

Notes to Editors:

  1. Property types in JLL’s Global Capital Flows report include hotels, office, industrial and retail.  The numbers represented here are preliminary; the final Global Capital Flows report for Q4 2014 will be released in late January 2015.
  2. JLL’s Global Capital Flows analysis provides a set of data designed to help investors understand how commercial real estate capital is moving around the world. The findings are released quarterly, first in the transaction volume analysis represented in this release, and secondly in a broader quarterly report which will be issued in the following weeks. All of the current Global Capital Flows data can be found in an interactive website which also acts as a portal for media and clients to access Jones Lang LaSalle’s global capital markets research. Bookmark this site for the most up to date global real estate data: http://www.joneslanglasallesites.com/gcf  

For more news, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world.

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About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $53.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.