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January | February | 2015 Commercial Investment Real Estate
INTERNATIO NAL
BE AT
Australia continues to attract numer-
ous cross-border investors purchasing
hospitality real estate. Sydney is the site of the majority of
transactions, according to JLL. T e China-based Sunshine
Insurance Group recently paid a record $463 million for the
Sheraton on the Park in Sydney, breaking the previous record
of $340 million for the Four Seasons, sold in 2013, according
to the Sydney Morning Herald. A building boom in of ce and
infrastructure development is projected to increase occupancy
in f ve-star hotels in Sydney and likewise increase investor
interest in acquiring hotels.
Big Deal
Ä
Australia's
Markets to
Watch
¬
Of ce leasing volumes were up 16 percent in 3Q14 in Asia-Pacif c markets and are forecast to
rise 15 to 20 percent in 2014 and 10 to 15 percent in 2015, according to JLL. China in particular is
seeing increased leasing from domestic f nancial services and law f rms on a hiring binge. Beijing is
forecast to remain a landlord's market through 2016, as a constricted market for high-quality space increases competition.
¬
Central and Eastern Europe continue to lead Europe's retail development with Russia and Turkey accounting for 81
percent of 2014's shopping center development activity, according to Cushman & Wakef eld. Top countries in the 2015 retail
development pipeline include Russia, Turkey, Poland, Romania, and Croatia.
Global Transaction
Volume, 1H2014
in billions
Industrial Costs
METRIC U.S. EUROPE
ASIA-
PACIFIC
Average annual rent $9 psf $11 psf $8.5 psf
Annual rent growth (2009–14) –0.2% –0.5% 2.6%
Projected annual rent growth (2014–18) 2.3% 1.7% 2.4%
Source: DTZ Research
Americas
EMEA
Asia-Pacific
$131
$176
$264
Source: Deloitte
Direct Commercial Volume,
Largest Markets
Market 3Q14 $volume YOY change
(in billions)
U.S. 71.0 37%
U.K. 25.1 29%
Germany 10.3 31%
Japan 8.1 –3%
Australia 6.9 23%
Source: JLL