RCA Insights

Global Investment Hovers Near Last Year’s Levels

By on August 10th, 2018

In the first half of 2018, U.S. investors cautiously returned to action and European activity slowed in both quarters, the new edition of Global Capital Trends shows. Asia Pacific grew in the first quarter but held steady in the second. Total global transactions of income-producing commercial real estate remained at the same level as a year prior.

Overall global investment grew by 7% compared to Q2’17. Income-producing assets dropped 3% for the quarter, while development sites increased 21% year-over-year. The retail sector showed an increase for the first time in five quarters, but this growth is unlikely to continue as it was inflated by Unibail’s acquisition of the global Westfield portfolio. Retail growth remained negative for the first half of 2018.

The industrial sector remains a bright spot, with volume growing 3% year-over-year in the second quarter and 25% year-over-year in the first half.

Hong Kong continues to surprise with 89% growth in activity for the first half of 2018 compared to the same period a year prior. Of the top five markets, only San Francisco saw a decrease in activity in the first half of this year compared to the same period in 2017.

1808 GCT Overview MAIN 2-01

If you are a current RCA subscriber, log into your account to download the Q2’18 Global Capital Trends report and data file. To receive information about becoming an RCA client, contact us.

Simon Mallinson

Executive Managing Director, EMEA & APAC
smallinson@rcanalytics.com

Based in London, Simon Mallinson joined Real Capital Analytics in January 2013. Simon has board level responsibility for EMEA and APAC, with a particular passion for the continued development of RCA’s industry-leading client service and capital markets analytics.

Previously, Simon was Senior Director leading European Research at Invesco Real Estate. Prior to Invesco, Simon held a number of roles with IPD (now part of MSCI) in London and the United States. As Head of US Services, based in Chicago, he established IPD’s first North American office.

Simon is a Board Member of US association NCREIF, a member of RICS and is active across a number of other global real estate associations. He holds degrees from both Leeds and Manchester University, UK. Simon has set foot in 48 U.S. states and is looking for an excuse to visit Maine and Alaska.