What is Property Valuation reports mean?

As many other continental economies remain flat, Europe continues to be a key destination for property related investments. Nearly 40% of all cross-border European property investment last year originated from the United States. While overall economic output in the European Union remained around 1.7% in 2002, comparable to 2001, it is estimated that 2003 will be a much stronger year.

Growth is projected to be around 2.4% in the United Kingdom and 2.3% in the European Union. The diversity of the European market, however, dictates that at any one time there will be multiple economies outperforming the European Average. The property valuation report will tell the definite position of the substance, by revealing its east west north and south.

Around the eastern seaboard, the major growth corridors in industrial land in Sydney are around Eastern Creek, Erskine Park and the South West Corridor around M5/M7 junction. Although there are varied reasons for their success, each of these economies has healthy fundamentals that are expected to drive growth forward.

The USA office leasing market lurched fitfully into recovery during 2004. The average Class A asking rental rate for available space, typically the last indicator to improve, ended the third quarter at $28.30 per sq ft per year full service gross. This was up by 1.7% from the third quarter of 2003, the first year-over-year gain in more than three years.

New York led all other markets with a 13.4% increase, but the gains were widespread. Twenty-seven of the 50 markets tracked by Grubb & Ellis posted higher average Class A asking rents in the third quarter of 2004 than in the third quarter of 2003. Companies, particularly large ones, have not been enthusiastic about hiring, which shows up clearly in the lackluster job growth numbers through the summer and early fall.

Consequently, the pace of the office market recovery has been weak with many tenants postponing leasing decisions until their prospects look more secure. Many of the companies that are hiring still have sublease space or shadow space to occupy before requiring any net new space. But enough companies leased space in 2004, particularly small and mid-sized firms, to stoke absorption, stabilize rents and arrest the three-year upward drift in the vacancy rate.