NEW YORK, Feb. 10 /PRNewswire/ -- Property professionals in Latin America are the most upbeat in the Americas about the market outlook, according to the Q4 2009 RICS Global Commercial Property Survey.
Brazil, along with Venezuela, Argentina, Peru and Chile, shows rising confidence in the commercial property market. Mexico, Canada and the United States are still mired in a negative outlook.
Commercial property transactions rose across the majority of the globe with Brazil leading the way. With low interest rates and relatively high yields, investors have returned. The net balance of property professionals reporting a rise in transactions in Brazil rose from 29 percent to 61 percent in the fourth quarter.
Tenant demand in Brazil is still high even after a record low vacancy rate in 2008. "Vacancy has increased to 6.6 percent after reaching 5.5 percent in 2008. Investors are always seeking good opportunities in Brazil. The deal level was lower due to lack of supply rather than shortage of capital," said Rodrigo Abbud, MRICS, of Equity Capital in Sao Paulo. "This market was developed on a condominium format, with fractional ownership, which makes it difficult to buy entire buildings. For 2010, the market has started hot. Tenants and investors are looking at projects under construction."
Further north, there may be glimmers of recovery. "Mexico will see rents stabilized by the end of Q2 as demand for industrial and retail space increases triggered by the recovery," said Oscar Franck, MRICS, managing director, IRR de Mexico. "Mexico's economy is tied to the economic behavior of its northern neighbor. It would not be a surprise to find rents and yearly increases going back to previous levels by early 2011."
In the United States, property professionals are showing caution and patience, according to Stephen T. Crosson, MRICS, of Crosson-Dannis Inc. in Dallas. "The market for all types of commercial property remains in stasis, due in large part to unwillingness of sellers to mark to market," Crosson said. "Banks continue to demonstrate a preference to restructure rather than to pursue default remedies and fundamental demand drivers, such as job creation, remain weak. Significant improvement is unlikely until the market 'clears.'"
"Our membership anticipates hot spots and Brazil and its neighbors are inspiring attention," said Matt Bruck, managing director, RICS Americas. "Our RICS Latin America Working Group is expanding activities in the region in anticipation of growing need for standards, guidance and trained professionals."
Read the survey: http://bit.ly/czRPFR
About RICS & RICS Americas
RICS (Royal Institution of Chartered Surveyors), with headquarters in London, is the leading organization of its kind in the world for more than 100,000 professionals in property, land, construction and related environmental issues.
RICS Americas, based in New York and covering North, Central and South America and the Caribbean, has more than 2,200 members in commercial and residential development, construction and project management, brokerage, planning and finance, valuation and fine arts appraisal. For further information visit www.ricsamericas.org or e-mail ricsamericas@rics.org.
SOURCE RICS Americas
