Commercial Investment Real Estate

MAY-JUN 2014

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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44 May | June | 2014 Commercial Investment Real Estate INTERNATIO NAL BE AT Hotel investors are focusing on the Asia-Pacif c market, Japan in particular, according to JLL. Singapore-based Ascendas Hospitality Trust recently bought the 17-year-old Namba Washington Hotel Plaza in Osaka, Japan, for $87 million. It was one of seven Japanese hotel transactions JLL facilitated in 1Q14 alone, which totaled $190 million. Asian hotel investment volumes were up 218 percent YOY in 2013, with Japan recording the highest investment volume at $2.7 billion, up 480 percent over 2012. "Toronto, the most expensive [offi ce] market in North America, is the 14th most expensive market globally." — DTZ Research Shopping Center Construction, 2H13 Top countries for new development Country Centers opened Added gross leasing area Russia 34 1.0 million sm Turkey 11 486,800 sm Ukraine 9 340,800 sm Source: Cushman & Wakefi eld Global Transactions, 1Q14 Direct commercial real estate transaction volumes globally topped $130 billion in 1Q14, up 23 percent YOY Americas ↑ 63% Europe ↑ 14% Asia Pacifi c ↓ 17% Source: JLL Big Deal Ä Japan's Markets to Watch ¬ T e hotel pipeline in the Middle East is at a six- year low, down 50 percent from its peak, according to Lodging Econometrics. Five franchises — Hilton, Starwood, Marriot, IHG, and Accor — account for 50 percent of the projects, the majority of which are being built in Saudi Arabia, Dubai, and Qatar. ¬ Lima, Peru; Bogota, Colombia; and Panama City, Panama; along with Mex- ico City; Santiago, Chile; and Sao Paulo, Brazil; are fueling "record foreign direct investment and economic growth that will create a rippled ef ect of commercial activity throughout Latin America in 2014 and beyond," according to JLL. Lima's 2.8 percent of ce vacancy is driving a 40 percent increase in of ce stock by 2016. Bogota recorded $16.8 billion in foreign direct investment in 2013, which, along with a 4.5 GDP growth, is driving of ce demand. Panama City has a GDP growth of 7.6 percent in 2013 and of ce supply is expected to grow by 47 percent by 2016, due to the Panama Canal expansion. 4 4 - 4 7 D - I n t e r n a t B e a t - D e a l . i n d d 4 4 44-47 D-Internat Beat-Deal.indd 44 4 / 2 9 / 1 4 3 : 1 3 P M 4/29/14 3:13 PM

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