The Real Deal Miami

Capital values steady in the Americas: report

June 06, 2011 12:43PM

Capital values have increased in the Americas and globally, according to CB Richard Ellis’ new Global Market View report covering the first quarter of 2011, released today. The CBRE Global Office Capital Value index increased 12 percent year-over-year in the first quarter of 2011 with values in the Americas’ major markets such as New York, Washington, DC, and San Francisco mainly on the rise.

In the first quarter alone, commercial mortgage-backed securities issuance for the Americas almost reached the level recorded for the entirety of 2010. While the majority of transactions occurring are domestic, cross-border transactions in the region in the first quarter show strong growth, with a 50.3 percent year-over-year increase, the vast majority taking place in the United States.

However, interest rates in the Americas remain abnormally low and employment levels remain a major cause for concern, meaning recovery is still fragile, the report says.

“Our report finds that rising global capital values are continuing to be led by the strong recovery in values in the Asia Pacific region, an expectation for improved property fundamentals in the Americas and moderate positive change in the European markets,” said Raymond Torto, CBRE’s chief economist. TRD