11/05/2009 | By Allen Kenney
More than 70 percent of commercial real estate investment managers expect positive returns from the global market in 2010, according to a survey published by UBS Investment Research.
UBS's research offers a comprehensive outlook on expected commercial real estate investment trends for next year. Responses were compiled from nearly 100 investors, who collectively manage approximately $265 billion in real estate funds.
Almost 90 percent of the respondents said they had seen inflows to their funds under management recently. UBS estimated that the group was averaging net fund inflows of roughly $1.5 billion per month during the past six months.
Seventy percent of the investors surveyed indicated that they expected the ongoing rally in listed commercial real estate companies to remain "sustainable."
In terms of asset allocations, the fund managers said they expected Asia and Australia to witness an increase in their share of new investment dollars, as well as the emerging "BRIC" markets—Brazil, Russia, India and China. Areas where they expect commercial values to fall include the United States, Europe and Japan.
Respondents also expressed support for capital-raising efforts via equity issuances. Overall, roughly two-thirds indicated they would support companies' equity initiatives to fund acquisitions.