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Silicon Valley commercial real estate market to continue surge

Posted on 15 February 2013 by Laxman  |  Email |Print

Silicon Valley’s office and research leasing and development sectors this year look more robust than in 2012, according to a high-profile report released Wednesday. What’s more, the tech employment and expansion boom that has gobbled up office and research space at a dazzling pace the last couple of years is showing few signs of slowing down, the report released by commercial real estate firm Colliers International stated.
Companies are currently seeking a combined total of 7 million square feet of office and research space in Silicon Valley, Colliers reported during its annual forecast and presentation in downtown San Jose. That would be roughly equivalent to enough space for six or seven regional……………………………………….Full Article: Source

U.K. commercial property values fall for 15th month in January

Posted on 15 February 2013 by Laxman  |  Email |Print

U.K. commercial real estate values fell for the 15th consecutive month in January led by a decline in retail, Investment Property Databank Ltd. said. The average value of stores, offices and warehouses declined 0.2 percent from December, London-based IPD said in a statement today. Total return, which combines changes in real estate values and rental income, was 0.4 percent in January.
“There are some encouraging signs starting to emerge, with pockets of improvement emerging around the U.K.,” Phil Tily, a managing director at IPD, said in the statement. “With the pricing so keen for Central London assets, there may be more movement amongst investors to seek better value in the regions.”……………………………………….Full Article: Source

Savills: Spanish investment volume records 10pct year-on-year rise

Posted on 15 February 2013 by Laxman  |  Email |Print

Savills latest Spanish research report shows that a fourth quarter pick-up in activity in Spain’s commercial property market resulted in a 10% year-on-year rise in investment volume in 2012, to €2.1 billion.
However, the international real estate advisor highlights that 50% of this year-end total is accounted for by three individual transactions, namely the sale of Torre Picasso for €400 million, the purchase of the Canalejas complex, Banco Santander’s headquarters in Madrid, by Villar Mir group for €215 million and the purchase of the 439 CaixaBank bank branches………………………………………..Full Article: Source

Polish investment nears pre-crisis levels

Posted on 15 February 2013 by Laxman  |  Email |Print

Poland saw €2.7 bn of commercial real estate investment last year, matching pre-crisis volumes for the first time since the onset of credit crisis, according to Colliers International. The result was mostly due to an impressive fourth quarter, during which around €1.6 bn of deals was reported.
The market was driven by large single transactions such as those involving Manufaktura, Zlote Tarasy and Warsaw Financial Center, underlining the confidence vested in the Polish market by the international investment community, Colliers said………………………………………..Full Article: Source

S.Africa: Market outlook still bullish for commercial property

Posted on 15 February 2013 by Laxman  |  Email |Print

Property investors and developers are upbeat about the prospects for the South African commercial property sector this year despite expectations by analysts and property professionals that the market will remain sluggish.
Gary Palmer, the chief executive of Paragon Lending Solutions, said the retail property sector was expected to grow, with a number of retailers wanting to increase exposure. The industrial sector was likely to remain stable but the office sector was not expected to recover soon, he said. Paragon had witnessed a surge in clients looking for funding for growth, indicating clients were more positive going into this year than last year………………………………………..Full Article: Source

Japan’s coming real estate revival

Posted on 15 February 2013 by Laxman  |  Email |Print

The average vacancy rate in Tokyo is currently running at 8.7 percent. By comparison, Mitsubishi Estate’s current vacancy rate is just 4.5 percent. While that’s up a bit less than one percent versus the same period last year, it’s down by 5.51 percent from the level it reported in the previous period.
The company’s lower-than-average vacancy rate is primarily due to the fact that while office demand is down overall, Mitsubishi Estate’s properties are located in some of the best and highest demand areas of Tokyo………………………………………..Full Article: Source

Strong performance in Canadian real estate continues

Posted on 14 February 2013 by Laxman  |  Email |Print

Canadian commercial real estate delivered another strong performance in 2012, as measured by the REALpac / IPD Canada Annual Property Index. The annual total return of 14.1% continued Canada’s strong performance.
Real estate outperformed public equities (7.5%), bonds (3.0%) and inflation (0.8%). (Equities are based on the MSCI Canada Index. Bonds are based on the JP Morgan 7-10 Year Government Bond Index. Inflation is based on data from Statistics Canada). Looking at the 13 year history of the REALpac / IPD Canada Annual Property Index, 2012 was the 5th highest annual total return ever………………………………………..Full Article: Source

UK commercial property performance stable

Posted on 14 February 2013 by Laxman  |  Email |Print

CBRE’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%. In offices outside of the capital, values fell by 1.1% over the month………………………………………..Full Article: Source

Big hotel deals boost Australian commercial property sales as global confidence slowly returns

Posted on 14 February 2013 by Laxman  |  Email |Print

Investment in Australian commercial real estate fell in the final quarter of 2012 but the outlook remains bright for 2013 as global investor confidence rises.
Over the December 2012 quarter, Australian investors – both offshore and local – invested $US3.9 billion in commercial property, compared with $US4.2 billion in the September quarter – a decline of 6%, according the latest global real estate report from Jones Lang LaSalle (JLL)………………………………………..Full Article: Source

Real estate players turn their eyes to hotels

Posted on 13 February 2013 by Laxman  |  Email |Print

Real estate players are increasingly buying hotels to turn them into everything from private schools to retirement homes and apartment buildings.
An abundance of hotels are being put up for sale in Canada for a variety of reasons and a growing proportion of them are being bought by real estate firms, which have typically accounted for a small proportion of the acquisitions, according to a new report on the state of the hotel industry that will be released by real estate services firm CBRE on Tuesday………………………………………..Full Article: Source

UK: Commercial property investors lose almost 12pct

Posted on 12 February 2013 by Laxman  |  Email |Print

Investors in UK commercial property funds have lost almost 12 per cent over the last five years, according to housing investment and equity mortgage provider Castle Trust. Castle Trust’s research analysed the returns received from 42 funds in the IMA Property Sector which found that the best return from the 14 funds focused on the UK over five years is +1 per cent while the worst is -26.6 per cent, with the sector averaging losses of 11.4 per cent.
The research also showed that 34 per cent of financial advisers expect increased activity in the UK residential property market during 2013 as the sector begins to recover………………………………………..Full Article: Source

Washington: Six things to watch in commercial real estate

Posted on 11 February 2013 by Laxman  |  Email |Print

In 2012, the Washington commercial real estate market became more competitive for investors. Our region faced the threat of sequestration — automatic federal budget cuts — only to see a decision on those cuts deferred until March. Uncertainty led to stasis: executives across the region paused their hiring and investment, waiting for the government to act.
This led to the first year of negative net absorption — more space being vacated than leased — on record for the Washington area office market. At the same time, developers began building so many new apartments that supply now exceeds demand………………………………………..Full Article: Source

European shopping centres get confidence boost

Posted on 11 February 2013 by Laxman  |  Email |Print

The European shopping-centre industry has benefitied from rising confidence since the start of 2013, according to the International Council of Shopping Centers (ICSC). Despite January’s unfavourable weather and rising unemployment in many markets across Europe, and ongoing pressure on disposable incomes, current business conditions were judged significantly better than a year ago and improving month-on-month.
This was one of the main findings of the ICSC’s Euro-shop Index, its pan-European survey of shopping centre industry business conditions………………………………………..Full Article: Source

LGP forecasts better UK returns in 2013

Posted on 11 February 2013 by Laxman  |  Email |Print

Rob Martin, director of research at Legal & General Property, has forecast improved UK commercial property returns in 2013, with a continued polarisation between the best and worst performing assets. Martin believes economic growth is likely to remain sluggish but that there are signs that property returns are set to improve.
An easing in commercial real estate credit markets and the persuasive valuation case for UK commercial property should mean that prices for the market as a whole will be broadly stable in the next 12 months, in contrast to a fall of 3% over 2012, according to IPD’s quarterly index for all property………………………………………..Full Article: Source

Dutch commercial property values still falling - IPD/ROZ

Posted on 11 February 2013 by Laxman  |  Email |Print

Capital values in Dutch commercial property are still falling, according to the quarterly property index produced by UK performance group IPD and Dutch brokerage association ROZ. Their joint overall index returned -0.1% in fourth quarter against 3Q12 - the first negative quarter since 4Q09 - with capital values down in the last 2012 quarter by 1.3%.
Annual property returns in the IPD/ROZ Netherlands Property Index underperformed all other asset classes in 4Q12. The best performance came in equities, up 6.8% (MSCI NL), but property equities (MSCI NL/Real Estate) and bonds (JP Morgan GBI Global, NL 7-10 years) also provided higher returns than direct real estate at 3.7% and 2.9 % respectively………………………………………..Full Article: Source

Commercial real estate investors eyeing on major Asian markets with rising confidence

Posted on 07 February 2013 by Laxman  |  Email |Print

Asian markets continue to outperform Europe with positive investor sentiment, says RICS Global Commercial Property Survey Q4 2012, published last week. The latest results of the survey highlight the broadly positive occupier and investment momentum across Asia, the UAE, North America and Russia along with a declining flow of distressed properties coming onto the market in these areas. In addition, the survey paints an optimistic picture for the next quarter, with majority of Asian markets reporting rising transaction and capital value expectations and expecting investment demand to grow further stronger.
The China market continues to perform well on both the occupier and investment sides. Strong domestic consumption remains a key support for the former although the new supply coming onto the market suggests the positive momentum in rents may moderate over the coming months. Meanwhile, the investment market continues to be underpinned by a firm trend in new enquiries to purchase property. (Press Release)

Vacancy rate drops for Calgary industrial real estate market to 4.5pct

Posted on 07 February 2013 by Laxman  |  Email |Print

Sentiment in Calgary’s industrial real estate market is expected to be “cautious” over the first quarters of this year but tenant demand for space will remain “somewhat stable,” says a report by Cushman & Wakefield.
“As 2013 progresses, the global economy should begin to pick up, resulting in an increased demand for natural resources, setting Calgary and the rest of Alberta up for another surge in economic activity,” said the report………………………………………..Full Article: Source

JLL: European logistics and industrial investment ends the year on a high note

Posted on 07 February 2013 by Laxman  |  Email |Print

Investment in European logistics and industrial assets rose to €2.9 billion in the final quarter of 2012, reflecting a 41% increase on the previous quarter according to Jones Lang LaSalle research. Surging investment activity lifted the year’s total to €8.6 billion. This still reflects a 13% decline on 2011 but the overall slowdown remained below a previously expected 20%+ drop, thus exceeding expectations for the full-year 2012.
“The strong final quarter reflected the increasing investor appetite we witnessed throughout 2012 in the sector. The overall slowdown in transaction activity during 2012 was driven largely by an uneven spread in liquidity across the region, with falls across much of Southern Europe but strong growth in sought after core markets such as France, Germany and Poland.” comments Tom Waite, Associate Director European Capital Markets in Jones Lang LaSalle………………………………………..Full Article: Source

Property investors lost 11.4pct over five years

Posted on 07 February 2013 by Laxman  |  Email |Print

UK commercial property fund investors have lost an average of 11.4 per cent over the past five years, analysis by Castle Trust has shown. Sean Oldfield, chief executive of the housing investment and shared equity mortgage provider, claimed analysis of returns from 42 funds in the IMA Property Sector showed the best return from the 14 funds focused on the UK over five years was a meagre 1 per cent, while the worst performance was a loss of 26.6 per cent.
Mr Oldfield claimed advisers were instead turning to UK residential property, after a survey of advisers found 34 per cent expect increased interest in 2013 as the sector recovers………………………………………..Full Article: Source

French property sector deteriorates in Q4 - RICS

Posted on 04 February 2013 by Laxman  |  Email |Print

The French commercial sector deteriorated at a faster pace than in Greece, Italy or Spain in the last quarter of 2012, according to the latest RICS Global Commercial Property Survey.
The report on the fourth quarter of 2012 records falling occupier activity and negative expectations for rents and capital values across the region. RICS found that risk appetite was improving in some markets but in general Europe’s commercial real estate sector was still ‘in pain’……………………………………..Full Article: Source

UK: Property returns down by two thirds as low economic confidence drags down values

Posted on 01 February 2013 by Laxman  |  Email |Print

UK commercial property total returns fell to 2.7% in 2012 (7.8% in 2011), dragged down by falling capital values across the regions. Values fell by 3.1% for the year, while income returns held up at 6%, according to the IPD UK Quarterly Property Index. Negative valuer sentiment drove the fall in values, as UK property underwent its most challenging year since the downturn and the economy slipped briefly back into recession.
Steady income returns will bring some relief to investors, who have maintained cash flows despite muted occupier demand (rents remained flat for the year). Income continues to make property an attractive investment medium for investors, amidst the volatility of equities and low yields off gilts………………………………………..Full Article: Source

JLL: Vacancy rates in existing warehouse complexes in Moscow at record low

Posted on 01 February 2013 by Laxman  |  Email |Print

New completions in Q4 reached 124,000 m², which is a 40% y-o-y drop for new supply. Demand remains strong, with vacancy rates falling to 0.65%, the lowest they have been for the last five years, reported Jones Lang LaSalle experts.
With robust demand continuing, the majority of new supply reaching the market is fully leased or sold prior to the end of construction. Total new supply for 2012 in Moscow Region, measured slightly more than 592,000 m². Availability remains largely unaffected……………………………………….Full Article: Source

When good news for real estate is bad

Posted on 31 January 2013 by Laxman  |  Email |Print

A new worry is threatening the rally in the rebounding market for commercial mortgage-backed securities: Property owners have started to pick up the pace of resolving problems with distressed loans. That is bad news for bondholders who paid up to buy such securities on the assumption they would keep paying a high interest rate for a longer period.
This month, some investors have been hit with losses as their commercial-mortgage securities, or CMBS, that had been steadily rising in value for months went into reverse. For example, early this month investors were willing to pay as much as $116.13 for securities with a face value of $100, up from $100.81 in August 2011. Last week they were trading at $114.81………………………………………..Full Article: Source

Europe commercial real estate rebounds

Posted on 31 January 2013 by Laxman  |  Email |Print

Investment volumes in European commercial real estate hit nearly 44 billion euros ($ 59 billion) in the fourth quarter of 2012, the highest quarterly level of since 2007, according to data from property consultants, Cushman and Wakefield.
Cross-border investment rose by 19 percent last year and the property consultancy forecast that volumes could rise by 5 to 6 percent to 141 billion euros ($ 190 billion) in 2013, despite the risks presented by a still-fragile economic recovery in Europe………………………………………..Full Article: Source

Singapore office rents to rebound as supply growth abates

Posted on 31 January 2013 by Laxman  |  Email |Print

Singapore’s office rents are set to rebound from their first annual decline in three years as new supply shrinks and more businesses expand, according to the biggest office property trust in Asia outside of Japan.
Rents in the city are reaching a trough and demand may rise as the country positions itself as a regional business hub, said Lynette Leong, chief executive officer of CapitaCommercial Trust (CCT), Supply for the next three years will be about 0.8 million square feet a year, down from 1.3 million square feet over the past two decades, she said………………………………………..Full Article: Source

Should investors reconsider commercial property?

Posted on 30 January 2013 by Laxman  |  Email |Print

Giant pension fund piles into property as analysts say now is the time to snap up cheap exposure. Property investors have seen their holdings fall on average 11.4pc over the past five years, with some investors losing a quarter of their cash.
Analysis of returns from 42 funds in the IMA Property Sector by shared equity mortgage provider Castle Trust showed the worst fund lost 26.6pc over the period………………………………………..Full Article: Source

CBRE: Improved economic sentiment to set stage for European real estate recovery in 2014

Posted on 30 January 2013 by Laxman  |  Email |Print

A gradual recovery in economic performance and business confidence this year will set the European real estate market up for a stronger recovery in 2014, according to the latest report by CBRE, the world’s leading commercial real estate advisor.
European property markets faced a difficult economic environment in 2012, with heightened fears of a euro break up in the first half and output flat or falling across almost all the continent by the year end. 2013 has started more positively, with the threat of euro disintegration receding, together with encouraging news from China and the US, underpinning some signs of improvement in market sentiment and business confidence………………………………………..Full Article: Source

Last year saw strong growth for German commercial real estate markets

Posted on 30 January 2013 by Laxman  |  Email |Print

The German commercial real estate market recorded the highest volume of investment transactions for the past five years at €25.31 billion in 2012, according to international real estate advisor Savills. This marks an 8.5% increase compared to an already strong 2011 and the firm attributes this largely to rising levels of foreign investment.
International buyers accounted for 46% of the total investment volume in Germany in 2012, up from 31% in 2011, while investors from continental Europe were by far the most active, investing approximately €5.7 billion………………………………………..Full Article: Source

Poland’s industrial real estate seen growing strongly

Posted on 30 January 2013 by Laxman  |  Email |Print

The Polish industrial-logistics real estate market should grow strongly in the coming years as the amount of available land increases and large international groups develop more and more warehouses, according to a new report. Total stock currently stands at 7m sq.m.
The strength and stability of Poland’s economy during recession elsewhere is making the country a magnet for foreign logistics investment, says the report by realtor Jones Lang LaSalle, the Polish Information and Foreign Investment Agency and financial advisor Ernst & Young, plus Hays Poland………………………………………..Full Article: Source

Singapore’s slowing office growth to boost rents: Southeast Asia

Posted on 30 January 2013 by Laxman  |  Email |Print

Singapore’s office rents are set to rebound from their first annual decline in three years as new supply shrinks and more businesses expand, according to the biggest office property trust in Asia outside of Japan.
Rents in the city are reaching a trough and demand may rise as the country positions itself as a regional business hub, said Lynette Leong, chief executive officer of CapitaCommercial Trust (CCT), Supply for the next three years will be about 0.8 million square feet a year, down from 1.3 million square feet over the past two decades, she said………………………………………..Full Article: Source

European property investment beats 2007 in Q4

Posted on 29 January 2013 by Laxman  |  Email |Print

Trading activity in European commercial property rallied in late 2012 as the market stabilised after its mid-year malaise to post the highest level of quarterly trading since 2007. In the final quarter alone, investment volume totalled €43.7 bn, according to the latest data from property consultants Cushman & Wakefield.
Whilst the year ended only marginally - or 1.5% - up on 2011 with total volumes reaching €133.8 bn, the report predicts that recovery in the sector will start to gain momentum in 2013………………………………………..Full Article: Source

Global RE direct investment to double to $1 tln by 2030

Posted on 28 January 2013 by Laxman  |  Email |Print

Global direct commercial real estate investment will double to $1 tln (€744 bn) per annum by 2030, Jones Lang LaSalle says in a new report. Investors are responding to shifting economic conditions by funnelling more capital into commercial property, particularly in Asia, the report said. In 2012 global real estate investment volumes totalled nearly $450 bn.
‘Capital growth ambitions that dictated many investment decisions before the financial crisis have given way to a global hunt for secure income streams in a low-interest-rate environment,’ said Colin Dyer, President and CEO of Jones Lang LaSalle………………………………………..Full Article: Source

Moscow office completions slump to 10-year low

Posted on 28 January 2013 by Laxman  |  Email |Print

Office property completions in Moscow slumped to a 10-year low in 2012, according to Jones Lang LaSalle. About 162,500 m2 of new supply was launched on the market in the fourth quarter, the property adviser said.
This represents a 9% decline on a quarter-on-quarter basis with the annual cumulative figure amounting to 557,000 m2, which was down 33% on a year-on-year basis………………………………………..Full Article: Source

Canadian commercial real estate market performs despite turbulent international backdrop

Posted on 25 January 2013 by Laxman  |  Email |Print

Annual investment capital flow into the Canadian real estate sector is predicted to be close to CDN$30 Billion in 2013. This is a slight dip from the previous cyclical high of CDN$32.1 Billion in 2007, but above the long term average of CDN$19.3 Billion. Solid fundamentals will continue to characterize Canada’s real estate market despite a turbulent backdrop of uncertainty in international economies and financial markets.
“We anticipate strong interest in Canadian real estate from a broad cross section of investors in 2013, with the REIT sector dominating transactions,” said Keith Reading, Director of Research at Morguard. “Canadian property values will remain at the peak, given access to low cost capital and attractive yields.” (Press Release)

London office deals at pre-crisis levels

Posted on 25 January 2013 by Laxman  |  Email |Print

Surging international demand for central London offices helped draw £14bn of investment into the capital’s commercial property market during 2012, marking a return to pre-financial crisis levels of activity.
The total, two-thirds from foreign buyers, made spending in 2012 the third-highest level on record, after 2006 and 2007, and 50 per cent up on the amount invested during 2011, according to research for CBRE, the property consultancy………………………………………..Full Article: Source

Manhattan commercial-property deals reached record in ’12

Posted on 23 January 2013 by Laxman  |  Email |Print

Manhattan had a record number of commercial real estate sales last year as landlords rushed to complete deals before an expected tax increase, according to Massey Knakal Realty Services.
Transactions totaled 1,148 for the area south of 96th Street on the east side and below 110th Street on the west side, the New York-based brokerage said in a report today. That represents about 4.2 percent of the area’s properties, the most since Massey Knakal began keeping records in 1984………………………………………..Full Article: Source

Toronto: Demand for offices, condo bidding wars and the echo boom’s influence

Posted on 23 January 2013 by Laxman  |  Email |Print

For the past six months, local real estate chatter revolved around Toronto’s cooling housing market. This week presented a refreshing change: three separate stories on how and why the city’s real estate sector is still alive and, in the case of commercial property, in hot demand. Below, we break down what the latest numbers mean.
RealNet Canada’s 2012 data supported earlier signs of the high demand for downtown office space. The research firm says investment in GTA office properties is up eight per cent, to $2.85 billion, thanks to deals like the sale of the TD Canada Trust Tower ($453 million) and Standard Life Tower on King West ($306 million)………………………………………..Full Article: Source

CBRE: European commercial real estate investment activity finishes strongly in 2012

Posted on 23 January 2013 by Laxman  |  Email |Print

The European commercial real estate investment market finished 2012 strongly, according to figures released by CBRE Group, Inc. Although there is typically a seasonal uplift in activity in the final quarter of the year, the activity level was particularly pronounced in 2012, with several countries reporting their highest quarterly investment activity totals since 2007.
Total European investment reached €41.6 billion in Q4 2012, up by 48% on Q3 2012 and 16% on Q4 2011………………………………………..Full Article: Source

Commercial real estate investors favour safe haven cities in Europe

Posted on 22 January 2013 by Laxman  |  Email |Print

German cities dominate the investment prospects for Europe’s commercial real estate sector as investors continue to favour safe haven locations according to a new report.
The Emerging Trends in Real Estate Europe 2013, a real estate forecast published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) ranks 27 cities across Europe, based on respondents’ expectations for market performance in 2013………………………………………..Full Article: Source

Hungary’s commercial real estate market – skinier and skinier

Posted on 22 January 2013 by Laxman  |  Email |Print

When the property market struggles, the marketing spin has a tendency to rise exponentially. Take this recent example about the sale of a “big format unit”:
“Cushman & Wakefield, the world’s largest privately-held commercial real estate services firm, has secured 200 sq m premium retail space for Skiny, the well-known, originally Austrian underwear retailer, at Market Central Ferihegy on behalf of the owner AIG/Lincoln.”……………………………………….Full Article: Source

ULI: German cities top commercial real estate investment prospects

Posted on 21 January 2013 by Laxman  |  Email |Print

German cities dominate the investment prospects for Europe’s commercial real estate sector as investors continue to favor safe haven locations according to Emerging Trends in Real Estate Europe 2013, a real estate forecast published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC).
The ranking of 27 cities across Europe, based on respondents’ expectations for market performance in 2013, sees Munich top the league table followed closely by Berlin in second place and Hamburg in fifth position, with investors taking comfort from each of the cities’ strong local micro-economic climate and resilient property market conditions………………………………………..Full Article: Source

Polish 2012 RE investment matches 2011 at EUR2.75bln - JLL

Posted on 21 January 2013 by Laxman  |  Email |Print

Polish commercial real estate investment reached €2.75bn last year, about the same as 2011 as its strong economy and stable banking sector continued to attract investors, says Jones Lang LaSalle. This trend is likely to continue. Poland accounted for 76% of 2012 transactions by value in central and eastern Europe.
The last two years’ investment volumes compared to €1.98bn in 2010, JLL noted in a new report. Last year, transaction volumes in office reached €1.08bn, almost 40% of total, with retail assets accounting for €1.07bn, another 39%………………………………………..Full Article: Source

Singapore: Speculators may turn to commercial property

Posted on 21 January 2013 by Laxman  |  Email |Print

Buyer interest in commercial property is growing in the wake of last week’s cooling measures, which included curbs on red-hot industrial property. Experts said commercial property, as yet untouched by any of the seven rounds of cooling measures, could become the new target segment of speculators.
All eyes are now on upcoming launches of office and retail space, which analysts said could be oversubscribed. The industrial cooling measures consist of a seller’s stamp duty, imposed for the first time on the sector………………………………………..Full Article: Source

CBRE: Signs of resilience in prime European commercial rents and yields

Posted on 18 January 2013 by Laxman  |  Email |Print

While weak economic indicators from around much of Europe continue to affect market activity, CBRE’s quarterly survey of rents and yields for Q4 2012 showed a degree of resilience at the prime end of the market.
During Q4 2012, rents rose in the retail sector and were effectively flat in the office and industrial sectors, while yields for retail and office property saw some downward movement……………………………………….Full Article: Source

London, UK hotel market forecasted to have growth in 2013

Posted on 18 January 2013 by Laxman  |  Email |Print

According to STR Global and Tourism Economics, London and the overall UK region’s hotel market is expected to enjoy both positive supply and demand growth in 2013.
Supply in London is projected to increase by 3.5 percent, while demand will grow by 2.9 percent. The excess supply is forecasted to lead to an occupancy decrease of -0.5 percent in 2013. Revenue per available room (RevPAR) is expected to decline by -1.6 percent, primarily driven by a decrease in average daily rate (ADR) of -1.1 percent to GBP139.13………………………………………..Full Article: Source

Europe’s hotel market added 41,982 new rooms in 2012

Posted on 17 January 2013 by Laxman  |  Email |Print

According to STR Global, the Europe hotel industry opened 332 new hotels with 41,982 rooms in 2012. Among the Chain Scale segments, the Economy segment opened the most new rooms with 11,064 rooms in 95 properties.
Three other segments opened more than 5,000 new rooms in 2012: the Upper Midscale segment (67 hotels with 8,869 rooms); the Upscale segment (39 hotels with 6,137 rooms); and the Midscale segment (52 hotels with 5,537 rooms). The Luxury segment added the smallest number of new rooms in 2012 with 2,276 rooms in 14 hotels………………………………………..Full Article: Source

Bank rules hit UK property developers

Posted on 17 January 2013 by Laxman  |  Email |Print

UK commercial property developers are facing sharply higher costs and are likely to have to scrap many projects outside London as a result of tough new capital rules being imposed on British banks by the City watchdog.
Property companies and bankers to the sector have warned that the rules, which will force banks to hold substantially more capital against loans secured on offices and shops, risk derailing the prospects of recovery in commercial real estate values………………………………………..Full Article: Source

What’s ahead for CMBS and commercial real estate in 2013

Posted on 14 January 2013 by Laxman  |  Email |Print

In 2012, the CMBS (commercial mortgage-backed securities) market had a significant rally as is evident from the table below showing bond spreads over swaps. Not only were the spreads tighter significantly over the year, the performance was better than expectations by almost any measure.
The spread tightening was not limited to new issue either, legacy CMBS prices were up significantly too. Why did CMBS do better than expected, and can this trend of higher issuance and tighter spreads continue?……………………………………….Full Article: Source

Global commercial real estate investment volumes to $435 bln in 4Q 2012

Posted on 14 January 2013 by Laxman  |  Email |Print

The global real estate investment volumes in 2012 represented a slight increase on 2011’s R3.7 trillion (approx. US $435 billion), and a 36% increase over 2010.
Global real estate investment volumes in 4Q 2012 rallied, with R1.2 trillion (approx. US $141 billion) transacted over the quarter to lift the year’s total preliminary volume to R3.8 trillion (approx. US $436 billion), according to Jones Lang LaSalle capital markets research from 60 countries………………………………………..Full Article: Source

Chicago office market attracting coastal and foreign property investors

Posted on 11 January 2013 by Laxman  |  Email |Print

There is growing interest by private investors from the East and West Coasts in the Chicago office market today. One of these loosely-affiliated groups of high-net worth individuals bought the 540 West Madison Street building in Chicago’s West Loop– just west of Chicago’s main CBD–for $350 million at the end of December.
The fact that these East and West Coast buyers are looking to Chicago to make large investments is a good sign for the health of the market, says Michael Lirtzman, executive vice president at Transwestern in Chicago………………………………………..Full Article: Source

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