Steve Collins, managing director of the company's InternationalCapital Group, tells GlobeSt.com that real estate still is enjoyinga good chunk of investor interest from a capital shift from stocksand other securities early in the decade. "In spite of interestrates, people are still flocking to real estate as a safe haven,"he says. "It has dropped slightly; where you would have just had15-20 offers on a class A or trophy asset, you still see 10-12, andyou're seeing quality buyers. Some of the value-added orhigh-octane money is standing on the sidelines until interest ratescorrect themselves, but people who see treasury investment as agood bet are also still willing to take the risk on solid return,and a potential upside, from real estate.'

Foreign capital is responsible for much of the boost in the US,which had $163 billion of the total Americas figures, Collins says."It used to be, foreign capital were only looking at high-endproperties in cities such as New York City or San Francisco, butthey're getting priced out of those areas. But US investing isstill preferable to their home areas, so they'll still invest herein cities such as Minneapolis, Richmond or Tampa," he says. "Also,where the US investment had been mostly European, you're staring tosee more Mexican, Spanish and Korean investment." Europeaninvestment volumes rose 4% to 156.6 billion, with the UK, Germanyand France accounting for two-thirds of that figure, and investmentin Asia Pacific rose 12% to $55 billion, according to the JLLreport.

Collins says the second half of 2007 may see a slower move ofmoney, with investors being more selective, and he believes theportfolio fire sale may diminish, mirroring previous years ofslower second halves. "You're not going to seem the same volume asthe first half,and I don't think you're going to continue to seethe EOP-Blackstone-type deals, those types of trades are going tobe more entry level than building trade level," Collins says. "It'sgetting harder to find groups to buy up large portfolios."