Property Investors ‘To Face Short-Term Challenges’

In the US, for example, one of the issues is a reduction of future cash flow, which could see asset values adjusted to account for the “new, more conservative estimates” that have been introduced since the nation saw its AAA credit rating downgraded. Meanwhile, the commercial mortgage-backed security market is likely to see capital being withdrawn, even though core deals are expected to continue to find financing options.

The report suggested that in Europe, the major issue will be restrictions on lending. However, the experts noted that other avenues of raising capital have emerged – such as debt funding through the insurance sector – and these are expected to become more popular. Jones Lang LaSalle remained upbeat about the forecast for activity in the commercial property investment sector, recently stating that it anticipates transaction volumes to reach 440 billion US dollars (268 billion GBP) by the end of the year.

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Submited at Friday, August 19th, 2011 at 5:00 pm on Finance by jessica
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