International

International Beat

Canada's Big Deal

German billionaire Klaus-Michael Kuehe closed a C$425 million deal for the Royal Center in Vancouver, Canada, from Brookfield Canada Office Properties at a near record-low cap rate. The price was several million dollars higher than local bidders. The 36-story office tower with retail and parking sold for C$725 psf for the office portion. This purchase sets the tone for a high-flying year of international commercial properties transactions estimated to surpass the previous record in 2007. In that pre-recession year, 7.5 percent of all deals over C$10 million came from international investors, according to CBRE.

 

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Marks to Watch

Brexit is not affecting the office rents charged in London’s skyscrapers. Rents in London’s tall buildings reached a record $114 psf in the first half of 2016. Ranked No. 4 among the highest office rents in the world, London still trails Hong Kong at $278.50 psf, New York City at $158.00 psf, and Tokyo at $149.50, according to Knight Frank. “We have seen strong rental growth in London’s skyscrapers over the past two years, and rents remain resilient in spite of the economic uncertainty arising from the European Referendum result,” says Will Beardmore-Gray, head of consultancy and occupiers at Knight Frank in London.

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