The report provides detailed trend data on sales and leasingactivity across the world's office, retail and industrial sectorsfor the periods both preceding and following the onset of theglobal credit crisis. Newmark Knight Frank executive managingdirector Peter Kozel points out the subprime crisis in the US isnot the only factor in the downturn and says resolving the UScrisis will not necessarily improve the global pattern.

"The collapse of the US subprime residential mortgage market wasthe wind that resulted in the current rough seas, but eventuallosses...are expected to total [only] $200 billion. This is a verysmall portion of the equity and reserve base of the globalfinancial system," he says.

Looking regionally, the report says favorable conditions thatpreceded the current decline could soften the blow to the office,retail and industrial property sectors in North America. "Thecurrent downturn follows three years of robust gains in operatingperformance and market valuations," Kozel notes, adding that thepace of new construction also was not excessive in most propertysectors. "These conditions should help to cushion the impact ofdeclining demand.".