(Bloomberg News) U.S. commercial property transactions will increase as much as 40% in 2011 from this year as the economy expands, according to Jones Lang LaSalle Inc.
Buyers and sellers will complete about $92 billion of deals for apartment, office, industrial and retail properties this year, Jones Lang said today on a conference call discussing its real estate outlook. The Chicago-based company is the country's second-biggest publicly traded commercial property broker, behind CB Richard Ellis Group Inc. of Los Angeles.
Apartment and office building sales have been the most active in 2010, according to Jones Lang. Transactions will increase next year as U.S. gross domestic product grows 2% to 2.5%, the company said.
"Investors will begin taking on more risk," said Josh Gelormini, director of capital markets research at Jones Lang.
Apartment buildings will remain attractive as new construction remains limited, Gelormini said. Investors are taking advantage of financing involvement from Fannie Mae and Freddie Mac to fund multifamily deals, he said.
Rents in the downtown markets of major cities are starting to rise, said John Sikaitis, Jones Lang's director of office research. Suburban markets in areas including Philadelphia, Atlanta, Dallas and Chicago may remain stagnant, he said.