Firm Says Global CRE Sales Topped $1T in '07

Worldwide acquisitions of commercial property surpassed the $1 trillion mark in 2007, according to Real Capital Analytics, a New York-based research firm focusing on capital markets for commercial real estate. The "Global Capital Trends" report also found that 114 cities recorded more than $1 billion of commercial property sales, of which 48 were in North America, 35 in Europe, and 21 in Asia. "The size of the commercial property marketplace is much larger than previous estimates," said Robert M. White, founder and president of RCA. "Our research has documented more than $1 trillion of significant property sales in 2007 across 75 countries on five continents. Considering our research only includes sales greater than $10 million, the total size of the marketplace may be closer to $1.5 trillion." The report also indicates that office space was the most active property type, representing 32% of total sales, and that the risk premium for property ranges from 20 to 350 basis points, with the United Kingdom and Hong Kong ranking as the least risky investment locations. RCA can be found online at http://www.rcanalytics.com.