London's Big Deal
A European office REIT and a Chinese property developer joined forces to buy a trophy office building in London for approximately $391 million. NorthStar Realty Europe Corp. and China Resources Land Limited acquired 20 Gresham Street from AXA Investment Managers. This investment is the first commercial real estate investment in Europe for CRL. Located in London's largest business district, the 242,807-sf property is close to St. Paul's Cathedral and the Bank of England. The building is fully leased with blue-chip financial service firms, which include ICBC Standard Bank Plc, TSB Bank plc, Sacker & Partners LLP, and TLT LLP.
Global Markets to Watch
Rents in Grade A office buildings in Beijing's CBD are expected to decline 15 percent by 2021 as supply continues to rise in 2017, according to the China Daily. The vacancy rate for premium office buildings in Beijing rose to 6.1 percent in Q1 2017, up 0.5 percent from Q4 2016, leading to a 0.2 percent decrease in the average monthly rent, according to Savills in London. High-end leasable office space has grown to 10.08 million square meters in Beijing.