Intensity index for JLL offer, CRE transaction volume measure, improves in July

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After returning in the commercial real estate activity earlier this year due to widespread economic uncertainty, there are new signs that the activity is on the move again.

Capital increases and “the dynamics of the bidder” is stabilized, in accordance with the JLL index intensity for the bid protection, which in July in July – first of December.

The index measures the competition activity to obtain real time liquidity and competitiveness in private capital markets. This is, in turn, an indicator of the future flow capital over transactions for the sale of investments.

It consists of three submissions:

• Offer to Setting Offers: Final Winning Offer in relation to the requested price
• Bids by arrangement: Average Number of Bids by Appointment
• Offer Variability: Final bid price volatility

Stabilization in the dynamics of bids comes as the basis of property performance and assets and assets are generally held so far this year, despite weakening the investor feelings, in accordance with the report.

“Without a lack of liquidity, institutional investors are returning to the market with several sources of capital and renewed real estate appetite,” Ben Breslau, said research officer in JLL. “Although further recovery is expected, after previously moderated, the costs of lending and real estate values ​​at most markets have stabilized, so that we expect momentum to take up to the second half of the year.”

Offer to set bids, the difference between the most customer price is ready to pay the property and the lowest price that the seller is ready to accept, narrow on several healthy levels in several sectors. The sector that sees the most improvement is the so-called “alive”, which is largely multifamilly apartment, but also includes higher living and student residents.

Retail is in relation to last year, but in the last few months in the last few months as tariffs are very measured on that sector. Industrial is the greatest legacy, thanks to the insecurity of the supply chain also mud from potential and real tariffs.

The dynamics of office offer shows an improvement, initiates a growing number of bidders and more lenders allege on office loans. Some called the bottom in the office market after testifying caused. In some cases, investors are negotiated hunting, but such as the basis strengthen with more return agreement, the total demand for entering increases.

Lower line: Investors seem to accept uncertainty as a new Normal, according to the JLL report. Blokam said involving acceptance of greater risk.

“The attractiveness of investment movements as long-term value remains intact. As more investors move to” at risk “mode, together with extremely strong debt markets, we will lead to constant growth of capital flows,” he said.