CHICAGO-US annual real estate investment volume hit a record high of $375 billion in 2007, but experts say not to expect a repeat for 2008. The volume for 2008 is expected to decrease to 40% from 2007 numbers, according to the 2007 year-end report by Jones Lang LaSalle’s capital markets research group. Jones Lang LaSalle is predicting investment volume of between $225 billion and $260 billion for this year.

The volume of transactions in 2007 was a 4% increase over the volume in 2006, which was approximately $360 billion. While 2008 figures are expected to be below 2006 and 2007 numbers, 2008 volume is still expected to be more than the average annual volumes of 2002 through 2006, which ranged from $215 billion to $220 billion, says Noble Carpenter, managing director of Jones Lang LaSalle’s Capital Markets Group. The volume will seem “sluggish” but “it is still a very healthy transaction pace,” he says.

The decrease in transaction volume for 2008 is due to “primarily the credit crunch and the uncertainty around the economy,” Carpenter says. “We think there will be a lot of caution in the market.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.