Los Angeles, August 24, 2011
– The CBRE Global Capital Value Index posted a year over year increase of 15.2% during the second quarter (Q2) of 2011, lifted by especially strong capital value growth in Asia Pacific, which rose 24.2% year over year.
“Investor preference gravitated toward prime markets and core assets during the second quarter, fueling value growth in the CBRE Office Value Index,” said Dr. Raymond Torto, CBRE’s Global Chief Economist. “In contrast, secondary and tertiary market capital value growth globally remains subdued. While this strong showing in commercial real estate coincided with economic headwinds in the first half, the increased uncertainty in the global economy makes it unlikely that the performance of the first half of 2011 will continue for the second half.”
The CBRE Global Capital Value Index, which will be published in the Company’s latest Global Capital MarketView, shows that commercial real estate capital markets were active and gradually improving during Q2 2011 despite sustained economic headwinds. The upturn in capital values continued to be led by the recovery in the Asia Pacific. Australia emerged as a key destination for cross-border investment flows in Asia Pacific due to not only high yields, but also as a result of the Japan earthquake which muted transaction activity there and transferred investor interest to Australia.
The CBRE Americas Capital Value Index witnessed its largest gain of 12.7% year over year during Q2 2011 and the America’s index was the last global region to emerge into positive value growth following the financial crisis. While the CBRE EMEA Capital Value index turned positive one quarter earlier than the U.S., it decelerated in Q2 2011, gaining only 8.6% year over year, down from a 11.3% year over year gain in Q1 2011. Growth in EMEA has been affected by the European Sovereign Debt crisis.
The following graph depicts the CBRE Global Capital Value Index over the last decade:
The CBRE Global Capital Value Index was created by CB Richard Ellis Research and is comprised of data from 123 cities around the world. The base period for the index is Q1 2001.
To speak with a CBRE expert, please contact Robert McGrath (212.984.8267 or Robert.McGrath@cbre.com
).About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com