After fears heightened following the sovereign debt events in Europe and the United States during the summer of 2011, economic sentiment has since shifted in different ways across the major global regions. Economic growth for the United States has gradually improved, yet remains mild. Asia Pacific has entered a period of weaker growth, and monetary loosening is expected to put a floor under economic growth levels there. In Europe, continued debt issues and political uncertainty are driving a weaker short-term outlook.

Despite this, global demand for investment in real estate continues to improve, as evidenced by an 18 percent increase in global transaction volumes in 2011, as shown in the “Global Transaction Volumes” graph below. While activity paused late last year in reaction to sovereign debt concerns, initial volume for 2012 suggests that investors, while still cautious, are seeking to place capital.

Investors’ risk appetite for core/prime assets appears to b