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.
Issue link: http://cire.epubxp.com/i/897832
COMMERCIAL INVESTMENT REAL ESTATE 42 November | December 2017 B E A T INTERNATIONAL Global Markets to Watch Different countries have varying levels of current technology automating work activities. Overall, Japan has significantly higher risk, at 55 percent of hours worked compared to the 46 percent risk in the U.S. Much of the difference comes from Japan's manufacturing industry, which has an automation potential of 71 percent, according to the McKinsey Global Institute. Geopolitical Instability Threatens Global Economic Growth Source: CBRE Research Top-Ranked International Retail Rents Source: McKinsey & Company Survey of geopolitical instability as a risk to global economic growth over the next 12 months; % of respondents, by office location. 1 In the Middle East and North Africa, n=57; in Europe, n=343; in North America, n=301; and in Asia-Pacific, n=110. 2 In the Middle East and North Africa, n=81; in Europe, n=601; in North America, n=433; and in Asia-Pacific, n=185. Zsolt Hlinka/Getty Images ➊ New York City $3,240 psf ➋ London $1,753 psf ➌ Hong Kong $1,698 psf ➍ Paris $1,315 psf ➎ Tokyo $1,210 psf ➏ Sydney $1,030 psf ➐ Beijing $1,002 psf ➑ Zurich $882 psf ➒ Guangzhou, China $781 psf ➓ Singapore $765 psf North America Asia-Pacific June 2017 1 March 2017 2 Europe Middle East and North Africa 65% 50% 56% 39% 71% 55% 85% 56% New York City's Big Deal HNA Group, a Chinese conglomerate, purchased a trophy office building at 245 Park Avenue in New York from Brookfield Property Partners and the New York State Teachers' Retirement System for $2.21 billion, or $1,227 per square foot. The deal for the 1.8-msf property is one of the highest prices ever paid for an office building in Manhattan, and shows how Chinese investors are playing a major role in the U.S. commercial real estate market despite more stringent capital controls at home. Very few office properties have crossed the $2 billion threshold, according to The Real Deal. The lavish-spending HNA Group also owns a 25-percent stake in Hilton Worldwide Holdings and recently raised its stake to 9.9 percent in Deutsche Bank. A consortium of banks, led by JPMorgan Chase, financed the transaction with a $175 million loan.