Chicago-based Jones Lang LaSalle Inc said it expects 2008 year-end US capital markets' total transaction volume -- hindered by the global credit crisis and a recessionary economy -- to close at approximately $125 billion, a 70% decline from 2007. Further complicating the investment sales market will be the fierce competition for capital and a buyer-seller standoff that won't likely break until true distress hits a broad swath of owners beginning in late 2009, according to Earl Webb, CEO of Jones Lang LaSalle Capital Markets, Boston. Many of the loans underwritten from 2005 to 2007 contained aggressive rent-growth assumptions that will be unsupportable in 2009.
Capital markets 2008 transaction volume down 70 percent Anonymous Mortgage Banking; Mar 2009; 69, 6; Docstoc pg. 88 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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