Los Angeles — Retail real estate showed the strongest growth in capital values and rents of all property types globally in the third quarter of 2013, according to CBRE Group, Inc.
“Commercial real estate capital values generally rose faster than leasing fundamentals across all property types in Q3 2013, reflecting several capital markets trends that have been prevalent for some time,” said Dr. Raymond Torto, Global Chairman, CBRE Research. “First, returns in commercial real estate have been very strong relative to other major asset classes, attracting institutional capital sources to the sector. Second, the number of assets available for sale remained relatively limited. Finally, commercial real estate fundamentals are expected to improve and catch up with capital markets demand as regional economies continue to recover. This optimism is buttressed by the lack of new construction resulting in a tight leasing availability, especially in mature commercial real estate markets.”
The CBRE Global Retail Capital Value Index showed the strongest growth among property types, rising 2% during the quarter, and by 8% year-over-year. During third quarter 2013, the Global Industrial Capital Value Index rose 1.4%, and the Global Office Capital Value Index rose 1.1%.