Market Data

International Beat

Hong Kong’s Biggest Deal

In what Jones Lang LaSalle calls “the largest deal ever recorded in Hong Kong’s history,” Mapletree Investments purchased Festival Walk shopping center from Swire Pacific for $2.4 billion, as its first Hong Kong acquisition. Analysts predict it won’t be the last, speculating that the seven-story, 800,000-sf mall could be Mapletree’s seed property for a Chinese real estate investment trust. Hong Kong retail rents jumped 46 percent in 1Q11, according to CBRE, securing its place as the world’s second most expensive retail location after New York.

Top Cities for Foreign Direct Investment, 2006–2011

1. Singapore

2. Shanghai

3. Dubai

4. London

5. Tunis

Source: FDI Markets/Cushman & Wakefield

“The industrial market in Mexico is highly segmented, with robust demand levels in some markets such as Mexico City, Monterrey, and Bajio (central Mexico), while others, including several border districts, are negatively impacted by the demand shortfall in the U.S.”

—Jones Lang LaSalle, 4Q11

Markets to Watch

—Europe is hard hit by the euro crisis, but some markets may fare better than others, according to DTZ Research. In a forecast scenario, non-eurozone countries such as Sweden, Russia, Poland, and Turkey offered better value to office investors than traditional German and French safe havens.

Along with other international financial centers Hong Kong, New York, and Singapore, London is seeing a decrease in office leasing activity due to financial services layoffs, according to Jones Lang LaSalle. In 3Q11, London’s office leasing fell 40 percent YOY; New York’s leasing activity was down 40 percent from 2Q11.

Top World Labor Markets

Employment growth 2009–10 for these top five cities averaged between 4 percent and 7 percent.

1. Istanbul

2. Santiago, Chile

3. Shenzhen, China

4. Lima, Peru

5. Singapore

Source: Cushman & Wakefield

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