Enhance your client presentations and conversations with this newly updated deck featuring the most recent takeaways and figures from CBRE Global Capital Markets Research.
Key Takeaways
• The economic outlook was mixed in Q3 2022 as high inflation spurred central banks to aggressively raise interest rates amid a strong labor market and varying levels of economic growth during the quarter.
• Global commercial real estate investment volume fell by 27% y-o-y to US$254 billion in Q3 2022. Investment fell across regions with a 26% y-o-y decrease in the Americas, a 30% y-o-y decline in EMEA and a 18% y-o-y decrease in Asia Pacific. The decrease in investment volume was caused by rapidly increasing financing costs and a more uncertain economic outlook.
• Higher borrowing costs have led to cap rate decompression across all regions and property types. While some of these increases in yield have not yet to show in the data, anecdotally cap rates are up about 100 bps for most properties across the Americas with smaller increases being reported in Europe and Asia.
• Tighter financial conditions and a deteriorating economic outlook will weigh on commercial real estate investment for the rest of this year and into the first half of 2023.