The fourth quarter of 2010 and 2011 will see impressive gains made in commercial real estate markets, it has been suggested. That is one of the key findings of the recent Jones Lang LaSalle 2010 Investor Sentiment Survey, which also predicted that an increasing number of buyers would look to invest in commercial real estate within the next 12 months.
"The capital markets are recovering ahead of the market fundamentals given the wall of capital investors are interested in placing into real estate," said Jay Koster, Jones Lang LaSalle's capital markets president. "Investors are now getting more comfortable with the stability of the investment market and their risk profiles are increasing as competition remains very high on core product. As transaction activity increases, we'll see more investors move up the risk spectrum in the next six months."
The property consultants found that 85 per cent of investors are looking to add to their portfolios over the next year. Of those investors, 30 per cent expect to increase their investment by up to 30 per cent.