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News Release

London, Chicago, Singapore

Exceptional Q4 pushes Global Commercial Real Estate Investment Volumes to $436bn in 2012

Jones Lang LaSalle preliminary numbers show U.S. fiscal cliff tax concerns and pent-up demand lifted 4Q volumes to end the year ahead of 2011

London, Chicago, Singapore, January 14, 2013 – Global real estate investment volumes in 4Q 2012 rallied, with US$141 billion transacted over the quarter to lift the year’s total preliminary volume to $436 billion, according to Jones Lang LaSalle capital markets research from 60 countries. The real estate investment volumes in 2012 represented a slight increase on 2011’s $435 billion, and a 36 percent increase over 2010.

• Global 4Q 2012 totals $141 billion compared to $100 billion for 3Q and $119 billion for 4Q 2011.
• Direct real estate ownership is showing its attractiveness in a low-yield, high-liquidity world with below trend economic growth prospects for 2013.
• The “fiscal cliff” and pent-up demand pushes U.S. volumes 51 percent higher quarter on quarter as vendors fret over capital gains tax increases and the need to allocate capital, 34 percent up on 4Q 2011 and 11 percent higher year on year. Canada and Mexico also have a stronger year in 2012 than in 2011, showing growth is across the Americas.
• Asia-Pacific has a consistent end to the year, but full-year volumes are down slightly in 2012 at $92.5 billion compared to $98 billion in 2011 with slower economic growth in China affecting volumes in the second biggest market.
• Europe beat expectations by matching 2011 in Euro terms but was eight percent down in US$ terms partly due to a weak Euro. The United Kingdom remained the most active market in 2012 and there was increased activity in Q4 on the continent with France, Germany and the Nordics seeing stronger ends to the year.
• On the back of this better-than-expected end to 2012, Jones Lang LaSalle is estimating full year 2013 volumes will be between $450-500 billion, with performance back ended following a similar pattern to 2011 and 2012. Momentum will be maintained in the Americas with Asia Pacific expected to improve and EMEA looking to record a similar performance to 2012.

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle, said: “The surge in the final quarter of the year demonstrates once again that real estate markets are well through the recovery phase of the cycle and are now supporting year-on-year increases in transactional volumes.  Based on this evidence we anticipate that 2013 will be another one of growth with global volumes set to be between $450-500 billion.”

David Green-Morgan, Global Capital Markets Research Director, commented: “The greater allocations to real estate from a number of institutional and private equity groups are starting to have a real impact on the global real estate investment market. The threat of higher capital gains taxes in the U.S. triggered a wave of yearend transactions, but the underlying factor is the attraction of real estate in a low-yield, high-liquidity environment. Despite the improvement in values over the last three years globally, we are still 15 to 20 percent below the market peak. There remains a great deal of upside potential, particularly in secondary markets which have remained subdued since the financial crisis but are starting to attract investor interest given their more attractive yields.”

Global Commercial Real Estate Investment Volumes
Source: Jones Lang LaSalle
Notes to the Editors
Property types in the Global Capital Flows report include hotels, office, industrial and retail.  The numbers represented here are preliminary; the final Global Capital Flows report for 4Q 2012 will be released in late January 2013.

What is Global Capital Flows?
Jones Lang LaSalle’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: -

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 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 195 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit