INTERNATIONAL
BE AT
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England's
Big Deal
Until recently, ofce acquisitions outside of London were rare. But the
sale-leaseback of One Angel Square in Manchester, England, for £142
million, about $217 million, by German-based RREEF Real Estate, signals
that foreign investors are moving into smaller international markets in
search of high-quality product. Completed in 2012, the 329,218-sf building
is considered one of Europe's most sustainable properties. Overall Europe
attracted $40 billion in direct investment in 1Q13, with $11.5 billion spent
in the major markets of London, Paris, and Moscow. More than 50 percent
of the transactions in those cities were from foreign investors, with North
American investors spending $3 billion on European properties in 1Q13.
Hospitality Investment Volume
in U.S.$ billions
Top Global GDP Growth Rates
Percentage per year
COUNTRY
2013–2016
2009–2012
China
8.3
9.2
India
7.2
7.6
Africa
4.8
3.3
Brazil
4.2
2.7
United States
2.7
Americas
EMEA
Asia Pacific
Source: Global Hospitality Resources
0.8
Source: IHS Global Insight, 2013
"Aside from Russia and Turkey, other countries expected to experience
double-digit growth in shopping centre floor space by the end of 2014
include Croatia, Bosnia and Herzegovina, Bulgaria, and Ukraine,
emphasizing the increasing influence of Central and Eastern Europe."
— Neal Best, associate director of Cushman & Wakefield's European Research Group
Markets to ¬
Watch
Lima, Peru, has one of the world's tightest ofce markets, with a 2012 vacancy rate of just 1.1 percent, according
to Jones Lang LaSalle. Peru's 6.3 percent growth rate is benefting from efective government economic management.
Lima's fast-growing business center will add close to 340,000 sm of ofce space in the next two years.
Puerto Rico marked its frst positive economic growth since 2007, yet the meager 1 percent GDP growth means the island still
has far to go to improve its world fscal standing, according to Jones Lang LaSalle. San Juan's 2012 ofce vacancy was 17 percent, with
only 5,000 sm absorbed during the year.
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July | August | 2013
Commercial Investment Real Estate