Global retail properties saw the highest levels of growth in capital values and rents of all property types during the third quarter, according to a new report released by CBRE.
The global retail capital value index increased by a full two percentage points during Q3 and eight per cent year-on-year.
The industrial value index rose by 1.4 per cent, while the office index increased by 1.1 per cent during the same period.
The Americas were the strongest performing region during the third quarter, with an increase of seven per cent on an annual basis, according to the CBRE report.
Global retail space also led the way in commercial property rental growth. The retail index increased by one percentage point during the quarter and four per cent from last year. These figures reflect limited space availability as well as increased retailer demand for prime space, according to CBRE.
Office rents did not change significantly, and industrial rents increased by less than one per cent during the quarter. Global office rental growth in the office sector was, once again, led by the Americas with the U.S. markets firmly in the lead.
Commercial real estate capital values increased faster than leasing fundamentals across all property types during Q3. This reflected several capital markets trends that have been prevalent for some time.
Dr. Raymond Torto, CBRE’s Global Research Chairman, said that returns in commercial real estate have been very strong “relative to other major asset classes.” He continued to say that commercial real estate fundamentals are likely to improve and catch up with capital markets demand as regional economies continue to recover.
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