Marktbericht USA Apr08

The capital market environment has changed dramatically over the past six months and even since the year began.

Executive Summary

• The adverse effects of the credit market crisis on the commercial real estate capital and space markets became more pronounced in the first quarter.
  
• With the CMBS market all but shut down and commercial banks struggling to repair their balance sheets, liquidity in the commercial real estate debt markets remains very constrained.
  
• U.S. REITs outperformed the broader equity markets in the first quarter and are showing increasing signs of life after reaching new lows in January, but they remain extremely volatile.
  
• Transaction and leasing activity remains subdued as lenders, investors and tenants remain on the sidelines awaiting further clarity on the near-term trajectory of the economy and commercial property markets.
  
• Cap rates have started to rise, but there continues to be little evidence of distress.