July | August | 2016 Commercial Investment Real Estate
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"German investors were the most active cross-border investors, acquiring assets from Australia to Canada.
eir 30-percent increase in activity elevated them above both Chinese and North American investors in 1Q16."
— JJL
Direct CRE Volume, 1Q16
in billions
Market 1Q16 4Q15 % change
Americas $61 $85 -28%
EMEA $48 $90 -47%
Asia-Pacific $24 $36 -34%
Total $133 $211 -37%
Source: JLL
Top Global Office Markets, 1Q16
YOY rent growth change
1. Oakland-East Bay, Calif. 34.0%
2. Dublin 25.0%
3. Dubai 20.0%
4. Stockholm 17.8%
5. Atlanta 17.1%
Source: JLL
Most Expensive
Industrial Markets
Rent, U.S.$psf, 4Q15
Hong Kong $28.94
Tokyo $16.74
London $16.36
Singapore $10.91
Stockholm $9.90
Source: CBRE
London's office space market is about to get a whole lot bigger with 51
new developments starting construction in the six-month period from
October 2015 to March this year. It's the highest level of construction in
20 years, according to Deloitte Real Estate's London Office Crane sur-
vey. e number far surpasses the 2007 record of 37 office construction
projects and comprises 14.2 msf, the greatest amount of space under
construction since 1Q08. More-stringent financing since the reces-
sion has limited new development, pushing down the vacancy rate in
London's main financial district from 5.7 percent in 1Q15 to 3.4 percent
in 1Q16, according to JLL. Although London office assets are a top buy
for foreign investors, a slowdown across Europe — plus concerns about
the "Brexit" vote — sent London deal volumes down 47 percent YOY in
1Q16, according to Real Capital Analytics.
London's
Big Deal
Robert
Herhold/Thinkstock