CBRE 2012 Global View

From the 2012 CBRE Global View:

For 2012, there are many possible challenges, and failure to address these could yield an outcome worse than what is generally expected. One issue that is receiving remarkably little attention as we publish this ViewPoint is the prospect of another spike in oil prices due to the sanctions imposed on, and even a possible war with, Iran. We saw the impact on oil prices in 2011, and while economic dependency on conventional fossil fuels is gradually declining, we know from history that the global economy remains highly susceptible to challenges from such disruptions and pricing changes.

While the consensus outlook remains heavily overshadowed by negative factors, the positive effects of a broad-based agreement on deficits, debt and economic growth could be substantial. With most businesses holding higher-than-normal cash balances, and with consumer and business confidence retarded by the current policy paralysis, policy agreements that yield a significant improvement in confidence could unleash strong economic growth globally. This, in turn, would have positive implications for both occupiers and owners of commercial real estate.

Download the entire global view here.