Market Data

International Beat

London's Big Deal

CC Land Holdings Ltd., backed by a Hong Kong property investor, has purchased the Leadenhall Building in London for $1.42 billion from the British Land PLC and Oxford Properties Group. Known as the Cheesegrater for its triangular shape, Leadenhall is the tallest tower in London's financial district. Since Brexit, investors from China and Hong Kong are snapping up commercial properties in London because the yuan is up 12 percent versus the British pound, while its value has declined compared to the U.S. dollar. These investors have bought more than $3.6 billion of central London property in 2016, more than investors from the U.S. or Europe, according to JLL. 

In 2015, European transaction volumes reached a record high at nearly 320 billion Euros. That dropped to 250 billion Euros in 2016. Source: Real Capital Analysis.

Global Markets to Watch

2017 is expected to be a year of stronger economic growth but with greater policy uncertainty. The global economic cycle, which is in the mid-to-late stage, has been improved by fiscal stimulus in China. More government spending is on its way, especially in the U.S., spurring more economic growth. Key risks involve cooling trade relations between the U.S. and China; Brexit; and political elections in Europe, according to CBRE Research.

 

Here are the 2016 forecasts for real private consumption by country from lowest percent per year to highest: (1) Brazil, is the only country here to show negative growth, (2) Japan, (3) Italy, (4) Germany, (5) France, (6) Eurozone, (7) Canada, (8) South Korea, (9) Australia, (10) U.S., (11) UK, (12) Spain, and (13) China, which grew more than double than Spain.

Continue Reading

MayJuneCover

Recommended

Market Trends

May.June.17

Current Market Trends: Consumers are increasingly aware of prices. What does that mean for retail? | The top 10 U.S. cities with the lowest industrial vacancy rates | Industrial rents reach highest peak since 2007 | What are the five major trends affecting CRE?

Read More

Regional Outlook

May.June.17

Houston's office market may rise again. | Top 5 multifamily markets with the highest 2017 expected completions and absorption. | Low office vacancy rates in Boston. | Industrial markets in California and Miami are strong | Hotel market grows in Charlotte, N.C.

Read More

Mixed Signals

May.June.17

Commercial real estate financing is still relatively cheap and fairly accessible, but there is room for volatility. With a Trump administration, the Brexit vote, and an increasing 10-year Treasury Note rate, a lot can change in the commercial real estate lending in the coming months.

Read More

International Beat

Mar.Apr.17

CIRE Magazine (Jan/Feb 2017): A look at the latest in commercial real estate industry around the globe.

Read More