Commercial property markets worldwide enjoyed a strong year in 2007 with slightly declining vacancy rates, rising rents and record sale prices, according to the NAI's 22nd annual Global Market Report. However, the outlook for 2008 is clouded by uncertainty following the mid-year emergence of the sub-prime debt problems, volatile credit markets and record high oil prices.

"Fears of a slowing U.S. economy and the credit crunch are clearly having an effect on investment real estate markets, even though commercial real estate fundamentals remain strong," stated NAI Global President & Chief Executive Officer Jeffrey M. Finn. "However, we believe the slowdown in activity is only temporary as the credit markets sort themselves out and a new pricing equilibrium is established. The U.S. economy remains fundamentally strong and supply is tight, especially in resurgent downtown areas. The U.S. story is counterbalanced by a dynamic global landscape with vast new markets continuing to grow at a rapid pace."

"Some pundits are predicting an imminent recession in the United States and eventually they will be correct as they have been predicting a recession for the past five years," added NAI Global Chief Economist Dr. Peter Linneman, Professor of Real Estate at the Wharton School, University of Pennsylvania, and principal of Linneman Associates. "The U.S. economy is too strong, and most companies and consumers are simply too well capitalized for a recession to be triggered by the current capital markets disarray."

Finn further noted opportunities will emerge from the current volatility. The credit crunch is leaving many domestic investors on the sidelines for the time being, but a weak U.S. dollar and the relative returns to other global real estate markets make U.S. real estate quite attractive to offshore investors.

NAI Global is one of the largest real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 8,000 professionals and 375 offices in 55 countries. Now in its 22nd year, NAI's Global Market Report offers insider insight and perspective on market conditions reported by NAI experts on the ground in over 200 property markets worldwide.