Commercial News »Los Angeles Edition | By Michael Gerrity | August 5, 2019.

According to commercial real estate advisor CBRE, global commercial real estate investment volume increased from Q1 2019 across all regions but overall fell by 7.5% year-over-year in Q2 2019, including entity-level deals. Only the Americas region reported year-over-year growth (0.7%). Activity was down from last year by 17% in EMEA and 14% in APAC.

Global investment volume totaled $ 428 billion in H1 2019, down by 10.6% from H1 2018. Still, with some slight improvement in the US economy and central banks, prospects for the second half of the year are good.

Global Commercial Real Estate Investment Highlights for Q2:

Global commercial real estate (CRE) investment, including entity-level deals, totaled $ 231 billion in Q2 2019, up by 17% from the previous quarter goal down by 7.5% from Q2 2018.

The Americas, EMEA, and APAC markets reported Q1 a drop in H1 activity from the same period of last year, in part of a larger transaction and a lack of quality assets for sale.

Strong leasing activity underpinned renewed investor demand for office assets.

Despite the increase in office transactions, industrial and hotel sector activity leveled off. The multifamily sector was the most active in the US

CBRE's Global Chief Economist, Richard Barkham tells The World Property Journal, "The Americas, EMEA and APAC markets all reported a rebound in commercial real estate investment from the first quarter but dropped in H1 activity from the same period last year, in part due to continued growth in the United States and continued growth in the United States, and continued growth in the United States. expansion and monetary easing around the world, potential supports a stronger second half of global investment activity. "

Resurgent office investment in gateway markets has driven the Q2 rebound. Berlin, Tokyo, Boston and San Francisco all had more than 50% year-over-year growth in the value of transactions. Most transactions were over $ 100 million dominated the office sector. This is because of the demand for high-quality office space remains high due to healthy employment growth. With the global economy in the 11th year of what is officially the longest cycle on record, investors want stable trophy assets to secure cash flows and for potential downturn protection.

The Americas was the only global growth year-over-year volume growth (+ 0.7% to $ 128 billion) in Q2. Americas' transaction totaled $ 235 billion in H1, down 5% from H1 2018. The US accounts for 53% of global investment year-to-date CRE with high growth in multifamily and office investments, which made up 67% of total US transactions in Q2.

Entity-level transactions, particularly in the industrial and retail sectors due to weaker economic sentiment. The year-over-year growth of US transactions was 3.4% including entity-level transactions and 7.7% excluding entity-level transactions.

As a result of US-dollar-denominated assets, there was an uptick of cross-border investment in the US, driven by investors from Canada, Israel, Germany and UAE Mexico and Brazil also benefited from cross-border interest from US French investors.

EMEA investment volume totaling $ 74 billion in Q2 fell by 17% year-over-year. Investment volume fell heavily in the UK (-50%), Netherlands (-35%) and Germany (-36%) but increased in the smaller markets of Italy, Poland and Belgium. In the first half of the year, EMEA investment volume totaled $ 136 billion, down by 19% from H1 2018. Approximately 65% of EMEA's reduced volume was in the UK and Germany. France maintained the same investment volume as in H1 2018.

Investment activity is improving in Europe, particularly in the office and residential sectors. However, the lack of quality product on the market is a constraint and uncertainty over the United States.

Investment volume in APAC totaled $ 29 billion in Q2, down 14% year-over-year. The region's H1 total of $ 57 trillion was down by 10.5% from H1 2018. Despite this slowdown, Japan (+ 79%), Singapore (+ 73%) and South Korea (+ 11%) accounted for half of the region's Q2 investment volume . Hong Kong (-64%), Mainland China (-33%) and Australia (-23%) had significant declines in investment volume as economic growth and uncertainty lingered. The office sector in these markets was the most negatively affected.

Asia has become more popular among Americas and EMEA investors. In H1 2018, only 7.5% of Asia's total investment is sourced cross-regional capital. In H1 2019, cross-regional capital inflows reached 11%. CRE investment by Westerners in China and Singapore grew by 329% and 71%, respectively, in H1 2019 vs. H1 2018, exceeding $ 3.7 billion. Currency weakness in China was one of the major drivers of Asia's increase in foreign investment.

CBRE's outlook for 2019 global CRE investment is for a single-digit percentage point drop from 2018's record. Compared with the same period last year, H1 2019 volume was down by 10.6%. A continued US market builder, coupled with strengthened fiscal and monetary easing around the world However, the negative sentiment around a potential "hard Brexit" and extended trade disputes are a marked constraint.