Jones Lang LaSalle: Global Market Perspective 12/2008

1. Despite the ongoing efforts of governments and central banks on both fronts, global property markets continue to be plagued by tight credit and rapidly weakening economic conditions.

2. Corporate occupiers are pulling back on near-term occupancy objectives and deferring "blend-and-extend" transactions in office, industrial and hotel sectors around the world.

3. Occupiers in virtually all sectors are taking a "wait-and-see" approach to leasing commitments out of strategic choice or financial necessity. Some industry sectors continue to report increased capital spending, however, particularly in healthcare and petrochemicals.

4. Value denial continues to afflict many owners and investors, even as property market fundamentals continue to decline. Pricing has declined as much as 25 to 30 percent or more and more in many areas, yet most owners seem to crave evidence - as measured by a history of closed transactions - that the bottoming process is in place.

5. The key question for owners and investors is whether to sell now or wait. From the current vantage point, holding may not be the best strategy. Property fundamentals will almost certainly worsen two years from now as leasing rates are re-set and vacancies rise, which could have a negative impact on value.

Global Market Perspective, December 2008