Report: 30 Cities Hold Half of CRE Wealth

More than half the recent global investment in commercial real estate is centered in just 30 cities, according to real estate services company Jones Lang LaSalle, which reports that a quarter of CRE wealth is spent in London, Tokyo, New York, Hong Kong, and Paris. The recently released report said Jones Lang LaSalle expects major cities in emerging markets to increasingly become viable contenders for real estate investment, expanding its list of 30 “alpha” cities over the decade. By 2020, the list is likely to broaden to the top 50, with investment spreading to such cities as Mexico City, Delhi, Guangzhou, Houston, and Istanbul, Jones Lang LaSalle said.

According to the report, those cities were attracting global corporations as tenants, but as the quality of the buildings there improves and the buying and selling become easier, these markets will become safer for investment. The study included investments in shopping centers, malls, office buildings, warehouse and distribution centers, and hotels.