CBRE Global In-Sights

The leadership of the CB Richard Ellis Asia Pacific research team discusses the latest economic and property trends across the region. Economic growth remains strong in Asia Pacific, but rising inflation in many countries poses a significant risk. Office markets in the region continue to see strong demand and declining vacancy rates putting upward pressure on prime rental rates. Strong retail leasing activity also continues to drive prime rental rates up. Improving property fundamentals have kept investor interest high, spurring an increase in rental and capital values across all sectors.

The regional research leadership of CB Richard Ellis—Nick Axford (Asia Pacific), Peter Damesick (EMEA), and Asieh Mansour (Americas)—discuss interregional economic and real estate investment themes with Global Chief Economist Ray Torto. This Global Themes conversation will be a quarterly feature of Global In-Sights. Investor optimism and debt capital availability across the regions are discussed in this edition.

Meet Asieh Mansour, CB Richard Ellis' new Head of Research for the Americas, and listen to her outlook for the U.S. commercial real estate market. In this Global In-Sight, Asieh covers the economic outlook, the prospects for fundamentals, and her view as to whether this is a good time for real estate investors. Asieh also talks with Ray Torto about why she joined CB Richard Ellis.

Paul Lunn, CBRE’s Global Database Manager, updates clients on the status and availability of the CBRE global database, which covers three property types in 210 cities across the world. The web-based application is called ERIX and is the basis of the market research conducted by CBRE Global Research. ERIX data is available to clients by region and via selected cities.

Peter Damesick, Chief Economist for EMEA, discusses his new research on the leasing and investment markets’ responsiveness to the Great Recession and its aftermath in three top financial centers: Hong Kong, London and New York. Recent academic research suggests that investments across these markets will not provide any diversification since the markets are synchronized financial centers. Peter finds rather strikingly different patterns in the three markets, however, and offers his thoughts as to the why these differences are occurring. Hong Kong, London and New York: Comparing Office Market Trends is the latest release of CBRE Global In-Sights, hosted by Raymond Torto, CBRE’s Global Chief Economist.

Gleb Nechayev, CBRE Econometric Advisors' Senior Economist talks to Ray Torto about the coming test for the U.S. housing market. Gleb's thesis is that if the traditional economic drivers of housing are still relevant, they should drive sales upward and lift prices in turn. With the spring selling season opening, will we see this come about? If the test is not met, this would indicate the a behavioral change (preference towards renting) might be underway.

Why do U.S. investors choose markets that are not expected to perform best in terms of market fundamentals? Serguei Chervachidze investigates this question and poses some hypotheses in this short podcast. Lessons learned here may be of interest to investors in other countries as well.

Chile is one of those vibrant South American countries currently experiencing strong demand for exports. It has handled its economic issues with ordered, beneficial macroeconomics policies, which have allowed the country to use its savings in recent economic downturns. Carlos Antúnez, president of CBRE Chile, discusses the office, industrial and investment real estate markets in a country that measures rents and returns in real (inflation-adjusted) terms.

Disparity and divergence is the theme as key research leaders within CBRE compare and contrast commercial real estate markets within a multi-speed global recovery. The theme applies across and within regions, countries, property markets and even asset characteristics. Nick Axford from Asia, Peter Damesick from Europe and Jon Southard from the United States discuss each of their regions, emphasizing that the economic recovery in 2011 will not be a tide that raises all boats. Nevertheless, they see a positive, albeit bumpy, year ahead for commercial real estate.

Chris Ludeman, Brian Stoffers and Jon Southard discuss the 2011 CBRE Trends report entitled, "Orchestrating the Next Arrangement: A Mixed Tempo Awaits." The report is a collaborative production, undertaken with an array of divisions within CB Richard Ellis and guided by Econometric Advisors’ research expertise. Drawing from the disciplines of leasing, sales, tenant representation, and global corporate services, this report provides a firm bottom-up view to supplement our more frequent top-down analysis.

In conjunction with the University of San Diego and McGraw-Hill Construction, CB Richard Ellis has released the results of its second annual study on the benefits of green office space in a significant portfolio of CBRE-managed office buildings. This year’s study takes a closer look at attitudes and behavior from the occupants’ perspective, and features an unprecedented reveal on what green buildings mean to investors, owners and managers, especially in relation to LEED certification. Raymond Torto, CBRE's Global Chief Economist, facilitates a discussion on key survey findings as the host of this Global In-Sights presentation, in conversation with CBRE’s National Director of Sustainability David Pogue. “Do Green Buildings Make Dollars & Sense?” indicates they actually do—and that the green building movement is growing, with economic and environmental benefits starting to drive the decision making of today’s industry leaders.

Jim Costello outlines his thoughts on the opportunities in the United States for commercial real estate investors. Jim sees 2011 as still a good time to invest and makes some suggestions on investment strategies and types of markets. Jim reminds investors and demonstrates empirically that investing in commercial real estate, following a recession, and assuming no double dip, is the best time.