The recovery of commercial property hinges on the depth of the damage caused by the financial crisis, writes SLI's Anne Breen.
The performance of commercial property is critically linked to growth in the underlying economy. After all, decisions by businesses to expand, invest in, or reduce their operations drive both GDP growth and floor-space demand. It is not surprising global property has had a torrid few years, with global GDP in 2009 contracting for the first year since 1945 and large developed economies losing between 6% and 8% of output. Fortunately, the global economy has already embarked on a recovery. It is likely the path will be slow, with the consensus of economists expecting just 3% in totality this y...
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