When the going gets tough – the tough go shopping! This often used levity expression currently has a ring of truth to it as far as retail real estate investment is concerned.
Comparing the sectorial investment performance within the commercial real estate markets in fourteen countries, on four continents, retail outstrips the office and industrial investment sectors.
On average, worldwide returns show that retail investment showed a 12,1% total return for the 2002 calendar year, industrial investment 9,4%, followed by a vacancy swollen office sector investment with 4,4% total return.
Retail lost its crown to industrial in only two countries, Australia and Denmark, whereas office under-performed retail and industrial in all countries monitored.
The EPRA/NAREIT Global Real Estate Index shows a 16,8% return for publicly traded real estate companies worldwide for the first seven months of 2003.
The S+P Global 1200 index, which showed a -21,0% return for global equities in 2002, has bounced back to show a 13,6% growth for the year to date.
Although the gap is narrowing, worldwide real estate investment performance could still outperform global equities in 2003.
SEE TABLE BELOW
WORLDWIDE COMMERCIAL REAL ESTATE RETURNS - 2002
Source: ResearchWorldwide.com
| Country | Total Return (i) | Retail | Office | Industrial | Source |
| Australia | 10,0 | 11,7 | 8,0 | 12,6 | Property Council of Australia |
| Canada | 8,8 | 11,1 | 6,6 | 11,0 | ICREIM/IPD |
| Denmark | 9,3 | 10,2 | 7,7 | 10,4 | DEI/IPD |
| France | 8,6 | 11,8 | 8,3 | 10,7 | IPD |
| Germany | 4,2 | 5,1 | 4,6 | N/A | DIX/IPD |
| Ireland | 4,5 | 16,1 | -0,3 | 1,3 | IPD/SCS |
| Netherlands | 8,8 | 9,9 | 8,3 | 9,5 | ROZ/IPD |
| Norway | 6,8 | 12,0 | 4,9 | 7,2 (ii) | IPD |
| Portugal | 13,5 | 17,8 | 7,0 | 10,1 | IPD |
| South Africa | 9,5 | 11,0 | 5,1 | 8,8 | IPD |
| Spain | 8,3 | 10,8 | 5,7 | 5,7 | IPD |
| Sweden | 2,4 | 7,1 | -0,2 | 6,4 | SFI/IPD |
| U.K. | 9,7 | 14,1 | 3,3 | 10,8 | IPD |
| USA | 5,2 | 21,1 | -6,9 | 17,3 | NAREIT (iii) |
| Simple Average | 7,8 | 12,1 | 4,4 | 9,4 |
| Explanatory Notes : | i) Total return measures income and capital for retail, office, industrial and other sectors for 2002. |
| ii) Includes other commercial. | |
| iii) NAREIT Composite REIT index. |
Ends
Issued by: ResearchWorldwide.com - The Worldwide Commercial Real Estate Information Portal
CONTACT:
Sabrina Lind
Media Liaison
ResearchWorldwide.com
Phone: +27 11 788 1321
Fax: +27 11 788 1359
Mobile: +27 82 446 6398
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.researchworldwide.com
Publisher: Research Worldwide
Source: Research Worldwide
