Commercial Investment Real Estate

JAN-FEB 2015

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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Page 48 of 55

44 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

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