CBRE's new report, "Global Insight," says that thus far thebiggest impact on commercial real estate from the economic downturnhas been that transaction volume has slowed "dramatically over thepast four quarters." While investment activity is off in every partof the world, "the decline is most severe in the Americas,especially in the US," notes the report, co-authored by RaymondTorto, global chief economist for CBRE, and Nick Axford, head ofEMEA Research & Consulting.

It is stressed in the new study that some conclusions don'tnecessarily apply to the whole market. It is pointed out that, inthe current market environment, most properties selling right noware better-quality assets, which tend to sell at lower cap ratesand higher prices, which doesn't necessarily reflect what is goingon the general market--where the trend is toward lower prices andhigher cap rates.

Nonetheless, the report says, property owners may fare well inthe coming years as leases roll over. Even in a slowing economy,tenants will find that their existing rents are below market andwill face a rising rents. That will mean "property owners will seeincreased net operating income," the authors conclude.