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Australia to continue as commercial property investment hotspot in 2013: Jones Lang LaSalle

Posted on 28 March 2013 by Laxman  |  Email |Print

Nearly half (45%) all real estate investment into the Asia Pacific region is flowing into Australian commercial property markets. This is double the next biggest markets of Japan (19% of investment) and China (18), according to Jones Lang LaSalle, with investors attracted to Australia by its transparent markets, efficient regulatory regimes supported by solid economic fundamentals and relatively high yields.
Offshore buyers of Australian commercial property are now around four times greater than those selling their investments, a trend that commenced in 2007 and which has grown more pronounced in the last three years………………………………………..Full Article: Source

Australia taking lion’s share of Asia Pacific commercial property investment: Report

Posted on 28 March 2013 by Laxman  |  Email |Print

Nearly half (45%) all real estate investment into the Asia Pacific region is flowing into Australian commercial property markets. This is double the next biggest markets of Japan (19% of investment) and China (18%), according to Jones Lang LaSalle, with investors attracted to Australia by its transparent markets, efficient regulatory regimes supported by solid economic fundamentals and relatively high yields.
Offshore buyers of Australian commercial property are now around four times greater than those selling their investments, a trend that commenced in 2007 and which has grown more pronounced in the last three years………………………………………..Full Article: Source

Quality time with the ailing Dutch commercial real estate sector

Posted on 27 March 2013 by Laxman  |  Email |Print

The latest bank-sovereign crisis always gets the most attention. Despite the best of intentions, no amount of preparation can get the current flair-up ready to have its place in the limelight stolen. Once torn, salt is rubbed into the wound by means of nasty comparisons that disrespect the unique nature of one’s distress.
Ireland is not Greece! Portugal is not Ireland! Italy is not Spain! And Cyprus is special because of gangsta finance and its reliance on deposits for funding………………………………………….Full Article: Source

India office real estate: A tale of the suburbs

Posted on 27 March 2013 by Laxman  |  Email |Print

India is rapidly urbanizing and the skylines of the country’s metropolises are changing quickly with the building of skyscrapers and modern architecture. The smaller towns too are metamorphosing in unprecedented ways through the expansion of transportation networks, the creation of central districts and parks and by numerous residential projects.
Many cities have been transformed and Ahmedabad is most illustrative of them. Even before the metro rail link between Ahmedabad and Gandhinagar has sprouted tracks, Gujarat International Finance Tec-City (Gift City) phase I (10 million sq ft) has already rolled out its construction plans………………………………………..Full Article: Source

C&W: UK Shopping center investment market off to flying start in 2013

Posted on 26 March 2013 by Laxman  |  Email |Print

The total UK shopping center investment transactions completed during the first quarter of 2013 will hit £1.05 billion, according to data released today by Cushman & Wakefield.
This quarter’s figure is marginally down on the £1.17 billion seen in Q4 2012 but activity has increased notably and the number of transactions has spiked from six in the last quarter of 2012 to 14 in Q1 2013. Volumes in the first quarter of 2013 are also up by around 65% when compared to the £610 million-worth of deals completed the same period last year………………………………………..Full Article: Source

India: Slowdown in IT space hits commercial real estate sector

Posted on 26 March 2013 by Laxman  |  Email |Print

Slow uptake of office space by information technology firms in India is beginning to cast a shadow over the country’s commercial real estate sector, data from property consultancy firms indicate.
Figures provided by two property consultants — Cushman & Wakefield and DTZ — show that absorption of office space in 2012 across the top eight Indian cities stood at 29.05 million sq ft, a 23% decline over the previous year. Of this, the share of the IT sector, which accounted for 64% of the commercial space absorbed in 2009, dropped to 44% in 2012 at 13.22 million sq ft. It was 16.08 million sq ft in 2011………………………………………..Full Article: Source

Munich’s office market once again takes lead in IVG office market scorings

Posted on 25 March 2013 by Laxman  |  Email |Print

Munich has successfully defended its lead in the latest office market scoring of IVG. This is the upshot of the IVG Germany Report published today. “Given the low number of completions and the decline in vacancies in the city, Munich is one of the few locations where rent increases in the core segment are to be expected,” said Dr. Thomas Beyerle, Head of CS & Research at IVG.
At 4.23 out of a possible score of 5 points, the Bavarian state capital remained ahead of Hamburg (4.16), Frankfurt (3.85), Cologne (3.84), Berlin (3.82), and Stuttgart (3.81). Last among Germany’s “Big Seven” was Düsseldorf with a 3.79 score………………………………………..Full Article: Source

PIMCO sees opportunity in European commercial property

Posted on 21 March 2013 by Laxman  |  Email |Print

The head of PIMCO’s mortgage credit portfolio management team said the firm is targeting direct commercial real estate investments and non-securitized loans, which carry greater risk but higher return potential.
Dan Ivascyn, who is also a managing director at Pacific Investment Management Co, which has $2 trillion under management, said the move by banks around the world to offload some of their debt has created opportunity to buy up unrated loans………………………………………..Full Article: Source

S.Africa: Office space under pressure in year ahead

Posted on 21 March 2013 by Laxman  |  Email |Print

Property pundits agree that office property will remain the problematic sector in the next 12 to 18 months with dominant retail centres likely to be the best performers. Vukile Property Fund CEO Laurence Rapp believes that — consistent with last year — the market will continue to “see the office property sector under pressure”.
While Rapp believes the performance of the industrial property sector will continue to improve, retail property will continue to be “the preferred asset class given its growth potential but inherently defensive nature”………………………………………..Full Article: Source

SWFs poised to be aggressive with US CRE

Posted on 20 March 2013 by Laxman  |  Email |Print

Sovereign wealth funds, it is no secret, have been steadily building up a war chest of funds and all signs point to an unleashing this year. What may take some by surprise is the level of their wealth and the aggressiveness by which they will deploy their assets—especially as they step up their property investments.
One example is Norway’s Government Pension Fund Global, which recently acquired commercial real estate in the US, including Washington, DC………………………………………..Full Article: Source

Commercial property the ‘belle of the ball’

Posted on 19 March 2013 by Laxman  |  Email |Print

Perhaps it sounds like a broken record at this point: Economically, Canada is in a good spot. Just look at the bustling commercial real estate market. A wall of capital is waiting to be placed, and its investors are fighting over core assets in Canada, experts say.
High-quality commercial real estate has become a good alternative to bond investments for a large pension fund, or other investment vehicles, says Ian MacCulloch, national research director with Colliers International, a real estate investment advisory company………………………………………..Full Article: Source

U.K. commercial property values fall for 16th month in February

Posted on 15 March 2013 by Laxman  |  Email |Print

U.K. commercial real estate values fell for the 16th consecutive month in February, led by a drop in retail properties, Investment Property Databank Ltd. said.
The average value of stores, offices and warehouses declined 0.2 percent from January, London-based IPD said in a statement today. Total return, which combines changes in real estate values and rental income, fell to 0.3 percent in February…………………………………Full Article: Source

Beijing commercial property transactions surge

Posted on 15 March 2013 by Laxman  |  Email |Print

Transactions of commercial properties and office buildings in Beijing surged 320.5 percent in the first 10 days of March month-on-month, data from Century 21st showed on Thursday. Around 759 units of commercial properties were sold and registered online by March 10, accounting for 6.3 percent of all the transactions recorded in the period.
Compared with the same period of last month, the figure is up 320.5 percent. The surge in the commercial property transactions follows the latest moves by the State Council to control the property market…………………………………Full Article: Source

Popularity of logistics rises in Europe: CBRE

Posted on 14 March 2013 by Laxman  |  Email |Print

Investors are increasingly warming to the logistics sector as sentiment cools on the retail property sector, according to CBRE’s Investor Intentions report published at MIPIM on Wednesday.
The 2013 survey revealed notable shifts in investor preferences between different sectors of the real estate market. As in 2012, offices were the single most preferred sector for purchases, chosen by 29% of investors………………………………….Full Article: Source

Sweden is Europe’s most liquid commercial property market

Posted on 14 March 2013 by Laxman  |  Email |Print

New research from DTZ shows Sweden regained its position as the most liquid1 European commercial property market in 2012 with turnover at 9% of its invested stock. Norway (8%) and the UK (6%) were ranked second and third most liquid markets in Europe in 2012 respectively.
They were followed by Poland (6%) and Germany (5%). Despite having the second-largest invested stock in Europe, France was only ranked as the 10th most liquid market………………………………….Full Article: Source

Improvement on the Czech commercial real estate market in sight?

Posted on 14 March 2013 by Laxman  |  Email |Print

Bank Austria sees anti-cyclical investment opportunities in the Czech Republic and CEE. The Czech Republic offers a low country risk and transparent real estate market. According to Reinhard Madlencnik, the head of Real Estate at Bank Austria, “Real estate investors and developers are running the risk of missing important anti-cyclical opportunities. At Bank Austria, we are ready to continue offering financing.”
Bank Austria’s real estate segment generated around EUR 1.5 billion in new business in 2012. The goal for 2013 is to maintain this volume, if not improve it. According to Madlencnik, “UniCredit’s outstanding CEE network enables us to apply our expertise in Austria and also use the local know-how of UniCredit Bank Czech Republic to provide our customers with comprehensive service.”…………………………………Full Article: Source

European commercial property at best value for last 10 years

Posted on 13 March 2013 by Laxman  |  Email |Print

European commercial property pricing has reached its most attractive level for investment in almost 10 years, according to research by property advisers DTZ. The company’s latest Fair Value Index released today looks at the current pricing in European property markets and grades them with a score out of 100.
The most recent figures show that the overall index score for Europe rose to 78 in the fourth quarter of last year, from 62 in the third quarter – Europe’s highest score since September 2003………………………………………..Full Article: Source

Europe: Industrial most attractive sector: DTZ

Posted on 13 March 2013 by Laxman  |  Email |Print

The industrial property sector currently offers the best value in Europe, followed by retail and offices, according to DTZ’s latest Fair Value report. The DTZ Fair Value Index for the fourth quarter of 2012 stood at 86, up from 69 in Q3, followed by retail at 82 (71) and offices at 70 (51).
Overall, European commercial property is at its best value in 10 years, with the index score rising to 78 in Q4 2012 from 62 in Q3. The rise in the index was driven by more positive sentiment on the eurozone, which pushed bond yields and required returns down. This has resulted in property looking better value in comparison to bonds………………………………………..Full Article: Source

European commercial property at best value for 10 years - DTZ

Posted on 12 March 2013 by Laxman  |  Email |Print

European commercial property pricing has reached its most attractive level in almost 10 years, according to research from DTZ, a UGL company. DTZ’s Fair Value Index offers quarterly insight into the relative attractiveness of current pricing in European property markets by grading them with a score out of 100.
The most recent figures show that in Q4 2012 the overall index score for Europe rose to 78 from 62 in the previous quarter - recording its highest score since September 2003………………………………………..Full Article: Source

Asia: Investors turning to commercial properties

Posted on 12 March 2013 by Laxman  |  Email |Print

Restrictive government measures and a fear of inflation are prompting investors to shift from residential to commercial properties. Research carried out by property consultancy firm Knight Frank showed that the value of transactions in the commercial property market has increased three times over the past four years.
This is in line with a global trend where more high net worth individuals (HNWIs) are investing in commercial property, according to Knight Frank’s annual Wealth Report. Said Nicholas Holt, regional head of research of Knight Frank Asia-Pacific: “In Hong Kong and Singapore, particularly, we are seeing more private investors who previously favoured residential investment looking at lower price point commercial property.”……………………………………….Full Article: Source

U.S. commercial-property prices seen rising near peak

Posted on 11 March 2013 by Laxman  |  Email |Print

Prices for U.S. commercial property are expected to climb in the next six months, extending a rebound that has sent values close to levels reached at the market’s peak in 2007, according to Green Street Advisors Inc.
There is an 80 percent likelihood that commercial real estate prices will rise over the next six months, the Newport Beach, California-based research firm said in a report yesterday. Prices climbed 1 percent in February and are within 1 percentage point of their August 2007 high, according to the company, which tracks real estate investment trusts………………………………………..Full Article: Source

U.S. commercial-property prices seen rising near peak

Posted on 08 March 2013 by Laxman  |  Email |Print

Prices for U.S. commercial property are expected to climb in the next six months, extending a rebound that has sent values close to levels reached at the market’s peak in 2007, according to Green Street Advisors Inc.
There is an 80 percent likelihood that commercial real estate prices will rise over the next six months, the Newport Beach, California-based research firm said………………………………………..Full Article: Source

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Over $870 bln of commercial real estate traded in 2012

Posted on 08 March 2013 by Laxman  |  Email |Print

Real Capital Analytics’ (RCA) recently released 2012 Global Capital Trends Year In Review highlighted robustness in global transaction volumes during 2012. While, in Europe and the Americas, the fourth quarter is typically stronger as investors look to complete transactions by year end, Q4 2012 was unusually strong leading to over $870 billion being recorded for the full year.
“Q1 2012 started off weak with various global economic concerns playing on investor minds, but by year end we have seen the highest quarterly investment levels since 2007,” said Simon Mallinson, Executive Managing Director, EMEA. “The pending deal pipeline for early 2013 is also looking positive for the year ahead.” (Press Release)

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IPD: UK institutional investment into supermarkets tops GBP1bln in 2012

Posted on 07 March 2013 by Laxman  |  Email |Print

According to the latest IPD/Briant Champion Long UK Supermarket Investment Report, 2012 saw more than £1.2 billion (approx. €1.39 billion) of supermarket assets changing hands last year, as investors sought to lock into long-term, index-linked income. Last year, UK institutions accounted for 90% of all supermarket investment purchases.
The lacklustre performance of the bond market is driving an increasing number of UK institutional investors, particularly annuity funds, to buy supermarket property investments that can offer the returns and security of income that institutions require………………………………………..Full Article: Source

Good times to return to CBD office market

Posted on 07 March 2013 by Laxman  |  Email |Print

The CBD office sector is set for prosperous times next year, according to real estate agents, as sentiments shift and tenants look to make the most of current market conditions. Colliers International’s CBD Office Research & Forecast Report for Australia and New Zealand predicts that next year will be one of renewed growth in the office market, offsetting the current weaker conditions.
Managing director of office leasing Simon Hunt said positive signs were prompting organisations to shift their focus beyond expected low economic growth this year. “Tenants are not yet in growth mode, but 2013 will be the year they get ready for a more prosperous 2014,” he said………………………………………..Full Article: Source

US hotel market figures don’t tell whole story

Posted on 06 March 2013 by Laxman  |  Email |Print

Although the sales volume of U.S. hotels in January was up a headline-grabbing 87 percent over the previous January, the numbers don’t necessarily reflect overall investor interest in the market. The $1.6 billion in sales tracked by Real Capital Analytics represented several large transactions, including the sale of the Atlanta Marriott Marquis to the Abu Dhabi Investment Authority for $293 million, or $176,000 per key.
Still, the hotel industry is clearly attracting more interest from investors. “The U.S. lodging industry, in terms of profitability and demand, continues to improve,” says Mark Woodworth, president, PKF Hospitality Research, LLC, based in Atlanta………………………………………..Full Article: Source

European hotel transaction activity down but more properties are coming to the market

Posted on 06 March 2013 by Laxman  |  Email |Print

According to HVS, the UK’s hotels market saw the most transaction activity during 2012 with a total volume of €1.4 billion, accounting for 38% of hotel volume in Europe. European hotel transaction volume reached a total of approximately €5.6 billion in 2012, a decrease of 21% on the €7.1 billion recorded in 2011 highlighting the fact that investors in Europe’s hotel market are still being cautious over purchases.
The latest 2012 European Hotel Transactions report, published annually by HVS London, notes that activity during 2012 involved some 101 transactions (of more than €7.5 million per property) with 301 hotels and more than 39,000 rooms. Although total volume was above the 2009 trough of €2 billion, it remains below the 10 year average of €9.5 billion since 2002………………………………………..Full Article: Source

Tokyo reversing slide in office rentals

Posted on 05 March 2013 by Laxman  |  Email |Print

Tokyo’s office market is showing signs of recovery after a two-decade decline, prompting companies such as Apple Inc. and Morgan Stanley to relocate before rents rise and vacancies fall.
Real estate broker Jones Lang LaSalle Inc. and Barclays Plc are forecasting leasing costs for prime office space will climb this year and next. The vacancy rate for grade-A buildings in the city’s major business districts fell for a second quarter to 8.8 percent as of December from a record 10.3 percent in the three months to June, according to broker CBRE Group Inc………………………………………..Full Article: Source

Cross-border investors drive Europe property market

Posted on 04 March 2013 by Laxman  |  Email |Print

European commercial real estate investment turnover reached 44.8 billion euros ($58.3 billion) in the fourth quarter (Q4) of 2012, an increase of 53 per cent on Q3 2012 and 25 per cent on Q4 2011, according to real estate services firm CBRE.
The increase in investment activity was largely driven by a significant rise in cross-border investment. Cross-border investors accounted for 46 per cent of the total in Q4 2012, up from 36 per cent in Q3 2012 (and 38 per cent in Q4 2011). This increase also goes a long way towards explaining the growth in average transaction size in Q4 2012………………………………………..Full Article: Source

Bank of China makes larger push into U.S. commercial real estate

Posted on 01 March 2013 by Laxman  |  Email |Print

Bank of China Ltd. has emerged as one of the largest foreign lenders to commercial real estate in the U.S. Now the state-owned Chinese bank is looking for ways to make even more loans in a quintessential American way: packaging its loans into securities that are in turn sold in a market where demand is red hot.
Bank of China’s interest in securitization coincides with an unprecedented start for the commercial-mortgage-bond market in 2013. The Federal Reserve’s low interest-rate policies have pushed more investors from relatively safer investments to those with higher yields and greater risks………………………………………..Full Article: Source

CBRE: European offices outperform retail in Q4 2012

Posted on 28 February 2013 by Laxman  |  Email |Print

Office properties were Europe’s best performing commercial real estate sector in Q4 2012, according to CBRE’s latest European Valuation Monitor, which measures capital value movements based on the company’s ongoing valuation of investment portfolios across the region.
Office properties were Europe’s best performing commercial real estate sector in Q4 2012, according to CBRE’s latest European Valuation Monitor, which measures capital value movements based on the company’s ongoing valuation of investment portfolios across the region………………………………………..Full Article: Source

Is now a good time to invest in UK commercial property?

Posted on 28 February 2013 by Laxman  |  Email |Print

As retail giants exit the high street, opinion is split on whether now is a good time to investment in UK commercial property. As retail giants such as HMV and Jessops announce the closure of stores across the UK, investors are questioning the value of holding commercial property.
High streets are predicted to struggle over the next 12 months as the UK’s economy recovery continues at a slow pace. So are there opportunities in the sector?……………………………………….Full Article: Source

India: Real estate regulator may not monitor commercial projects

Posted on 28 February 2013 by Laxman  |  Email |Print

In a move that may bring relief to developers, the Ministry of Housing & Urban Poverty Alleviation has decided to keep commercial offices and shops/malls out of the purview of the Real Estate (Regulation & Development) Bill. The Bill, in the making for about five years now, will only regulate the housing sector, said a senior ministry official.
The current draft Bill mandates developers to keep aside about 70 per cent of the collected amount from buyers in a separate account. The ministry may lower the limit to 50 per cent or make it construction-linked………………………………………..Full Article: Source

UK commercial property investment returns set to rise

Posted on 27 February 2013 by Laxman  |  Email |Print

Commercial property returns in the UK are set to improve in 2013 even though the economic growth for the year is likely to be slow, Property Wire reported on February 25. The industry website cited projections by Legal & General Property, UK’s third largest institutional property fund manager, which expects that prices for the market as a whole will remain stable throughout the year, in contrast to 2012 when the market fell about three percent.
Legal & General Property points to three key factors that will drive commercial property investment returns in 2013. First up is the efforts of central banks in Europe and beyond to stimulate growth, which have been factored into the company’s forecasts for higher economic growth………………………………………..Full Article: Source

U.S. hotel market performance upticks in January

Posted on 26 February 2013 by Laxman  |  Email |Print

According to STR, the U.S. hotel industry reported increases in all three key performance metrics during January 2013. Overall, the U.S. hotel industry’s occupancy rose 3.6 percent to 51.0 percent, its average daily rate was up 5.1 percent to US$105.96 and its revenue per available room increased 8.8 percent to US$54.02.

“January RevPAR growth rate was the strongest performance we’ve seen since June 2012,” said Brad Garner, STR’s COO. “The results were driven both by solid ADR and demand gains with Washington D.C., Miami and New York among the top performers………………………………………..Full Article: Source

U.S. banks targeting Europe commercial property

Posted on 26 February 2013 by Laxman  |  Email |Print

U.S. banks are looking to capitalize on a dearth of financing for Europe’s commercial property market that’s driven lending margins to five times the level prior to the 2008 crisis.
Citigroup Inc., Morgan Stanley, Bank of America Corp. and Wells Fargo & Co. are following insurers and distressed investors allocating capital to the region as local banks, which overextended during the last boom, are forced to contract amid new regulations. Europe faces an $82 billion shortfall between the amount of real-estate debt maturing through this year and the funding available to replace it, according to real-estate broker DTZ………………………………………..Full Article: Source

CEE reports stability on the industrial real estate market

Posted on 26 February 2013 by Laxman  |  Email |Print

According to the latest annual study on the Central European Industrial market released by Cushman & Wakefield, the industrial real estate market in Central Europe has reached equilibrium. Availability of space has maintained a healthy 10.5 per cent for two years and the volume of new construction amounted to 740,000 square metres last year, with new construction taking place in Poland in particular.
“The capacity of the market with regard to new construction in Central Europe is estimated at between 500,000 to 1 million square metres a year. Such an amount of modern logistic and production halls needs to be built every year………………………………………..Full Article: Source

Time to tap into the commercial property market

Posted on 26 February 2013 by Laxman  |  Email |Print

Non-UK prime property, or ‘secondary property’ as it is more commonly known, is institutionally unfashionable, but for those willing to take a closer look they will find generally less competition for good assets.
Aside from prime central London based commercial assets, all secondary assets are classed with a high yield that offers little or no hope for rental or capital value growth………………………………………..Full Article: Source

Commercial real estate forecast update: 2013-2014

Posted on 22 February 2013 by Laxman  |  Email |Print

Commercial real estate continues to improve at a moderate pace, much in line with our previous forecast update from six months ago. The office market enjoyed “11 consecutive quarters of occupancy growth and eight straight quarters of rent increases,” according to the Jones Lang LaSalle firm.
The length of the expansion is more noticeable than the strength of the expansion. REIS Inc. reported national figures for office vacancy that are only slightly lower than a year ago. Jones Lang LaSalle also reported that most of the improvement is in Class A space, which confirms the anecdotes I’ve been hearing as I travel around the country: the only challenge for tenants is finding large contiguous Class A spaces in downtown areas……………………………………Full Article: Source

C&W: London regains worlds most expensive office market crown

Posted on 22 February 2013 by Laxman  |  Email |Print

London’s West End is the world’s most expensive office market once again after regaining its crown from Hong Kong’s Central Business District (CBD), according to research published today in Cushman & Wakefield’s ‘Office Space Across the World 2013′.
The report highlights the scarcity of quality space in London which has increased competition and consequently inflated office rents by 2% in the West End to make them the most expensive in the world……………………………………Full Article: Source

U.S. Industrial real estate market enjoying a resurgence in late 2012

Posted on 21 February 2013 by Laxman  |  Email |Print

The industrial real estate market is making a comeback. Net demand for warehouse space was 40.8 million square feet in fourth quarter 2012, making it the second strongest quarter since record-keeping began in 1993 at Cassidy Turley, a commercial real estate company with offices around the US.
Industrial vacancies are tightening quickly, according to a report by Cassidy Turley. In the fourth quarter, vacancies declined by 20 basis points from the previous quarter to 8.9%. The national industrial vacancy rate was at its lowest point in three years in the fourth quarter of 2012……………………………………Full Article: Source

CBRE: Investment in Russian office sector at an all-time high

Posted on 21 February 2013 by Laxman  |  Email |Print

According to the latest research by CBRE, in the fourth quarter of 2012 the volume of investment in Russian commercial real estate amounted to US $1.73 billion (approx. €1.28 billion).
In 2012, the office sector was the most popular, with investment volumes totaling US $2.6 billion (approx. €1.9 billion), accounting for 52% of the total volume of registered investment. In absolute volumes, investment in the office sector is at an all-time high……………………………………Full Article: Source

Middle East serviced office market sees volatility

Posted on 21 February 2013 by Laxman  |  Email |Print

The serviced office market in the Middle East has been volatile in the last two years, with the number of open centres in Dubai falling by almost 30%, but growing by 72% in Abu Dhabi. These are the findings of Instant, the flexible office specialist, which says in its latest research report “Emerging Markets Serviced Office Review 2013″ that the serviced office sector of the property industry- led by the likes of Regus- is set to boom in emerging markets over the next five years, with the number of office centres forecast to double to over 1,500.
Volatility in the Middle East’s serviced office market has also been reflected in rates for individual workstations or desks. In Dubai rents for a desk fell from a high of $1,675 per month in 2008 to $900 per month in 2011. Workstation rates in Dubai currently stand at $955 and at $1,075 in Abu Dhabi. (Press Release)

Moscow’s new office supply expected to exceed 2012 deliveries by 50% according to CBRE

Posted on 20 February 2013 by Laxman  |  Email |Print

According to CBRE’s latest office market report, the Moscow market was stable in 2012: the volume of new construction was 556,264 m², just 8% less than in 2011, with the volume of leasing deals at 1 million m² (14% less than 2011). In 2013, CBRE expects the total volume of new supply in Moscow will total 860,000 m² exceeding 2012 supply by 50%.
Total take-up for 2012 was 1 million m² a reduction of 14% on 2011 (1.18 million m²), with take-up in 2013 expected to be comparable to 2011-2012 in the region of 1.1-1.2 million m²…………………………………Full Article: Source

Australian retail, office prices fall as rents decline, NAB says

Posted on 20 February 2013 by Laxman  |  Email |Print

Australian retail and office property prices fell in the three months to Dec. 31 as rents declined, a private survey showed. Retail property capital values dropped 1.4 percent in the last quarter of 2012, while industrial property values slipped 1.2 percent and offices weakened 0.6 percent, according to a National Australia Bank Ltd. survey released today. Rents eased in all markets in the period, led by a 2.1 percent decline in retail, NAB said.
Retail sales unexpectedly fell for a third month in December, the longest stretch of declines in 13 years, a government report showed Feb. 6. The Reserve Bank of Australia cut the benchmark interest rate to 3 percent in December, matching a half-century low, in a bid to spur non-mining areas of the economy…………………………………Full Article: Source

Global office real estate values and rents remained steady in Q4 2012

Posted on 20 February 2013 by Laxman  |  Email |Print

Property value and rent growth continued in the Americas, balancing flat performance and modest declines in the EMEA and Asia Pacific markets. Global office real estate values and rents remained steady in Q4 2012, according to CBRE Group, Inc. The CBRE Global Office Capital Value Index rose slightly with a gain of 0.6% for Q4, while the CBRE Global Office Rent Index also edged up in Q4, rising 0.3%.
“Considering the degree of uncertainty and caution permeating the global economy through the end of 2012, the performance of commercial real estate assets has been resilient. Fundamentals in absorption, occupancies and rents have seen gradual improvements while new supply is scarce, a dynamic which has maintained and improved the leasing market. Strong occupier and investor demand for prime space in the most desirable locations has played a significant role in the ongoing commercial real estate recovery as well,” said Dr. Raymond Torto, CBRE Global Chief Economist…………………………………Full Article: Source

Is commercial property an alternative to low bond yields?

Posted on 19 February 2013 by Laxman  |  Email |Print

Peter Toogood, investment director for Morningstar OBSR, says that with equity markets recording their best January for two decades and bond bulls becoming rare, commercial property may be an attractive option for yield-started institutional investors.
Improving economic data and sentiment and the downplaying of prior “tail risk” concerns was not lost on the financial markets. World equities surged in January, with the MSCI World Equity Index recording the best January in 19 years. January also provided the index’s largest monthly outside of recovery rallies since 2010…………………………………….Full Article: Source

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UK commercial property “stable” at start of 2013

Posted on 19 February 2013 by Laxman  |  Email |Print

UK commercial property’s performance was “stable” at the start of 2013, according to CBRE. The firm’s latest monthly index was largely unchanged to the end of January 2013. The All UK Property segment recorded a total return of 0.3% in the month, unchanged from December with annual total returns picking up slightly to 2.1%.
Capital values continued to slip, declining 0.2% in January, which was also a repeat of the declines recorded in the final two months of 2012. In January, for the ninth month running, central London offices were the only sector where capital values increased, up by 0.3%…………………………………….Full Article: Source

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Istanbul office market set to open up

Posted on 19 February 2013 by Laxman  |  Email |Print

Retail remains the most dominant investment sector in the Turkish real estate market, but change is afoot, according to panellists at PropertyEU’s Investment Briefing on Turkey.
Traditionally, office investment accounts for 40% of most investment markets in Europe. But in Turkey retail and leisure-related assets make up 80-90% of the real estate investment market, according to Jos Tromp, head of CEE research at CBRE…………………………………….Full Article: Source

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CBRE: Moscow industrial and logistics market continues dynamic growth

Posted on 18 February 2013 by Laxman  |  Email |Print

The key features of 2012 were the minimal levels of vacancy, continuing deficit of quality supply and as a result high level of prime rents, according to a new report from CBRE Russia Industrial and Logistics Research.
Over 2012, demand for logistics space in the Moscow region showed strong growth. The total volume of space on which deals were signed last year, exceeded the volume of annual construction by more than 30%. Demand significantly exceeds supply and currently about 40% of space under construction have already been sold or leased based on contracts signed last year………………………………………..Full Article: Source

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