2009 Annual Review and outlook

Highlights

• As the global economic slowdown gathered momentum throughout 2008 and into 2009, its negative impact on commercial property markets across the world has gained force. While the world's major financial centers such as New York and London were among the first to show the effects of the slowdown, its influence has become truly worldwide, spreading even to regions which initially seemed well placed to weather the storm, such as Asia-Pacific and the Middle East.
  
  
• Global demand for office space is down, with international companies reassessing their property requirements as they cut costs and reduce workforces. In most major markets, vacancy rates have risen and prime rents are falling. These trends will only continue in 2009.
  
  
• Globally, commercial real estate is in the midst of a period of significant repricing. In a challenging market, investors will need to keep clear heads to be able to assess when and where opportunities and value might arise during 2009.