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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Transformative Investments



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Navigating Stormy Seas


For most real estate analysts, the beginning perspective for retail real estate market analysis is often a site in search of a user, according to “A Rational Approach to Feasibility Analysis” in The Appraisal Journal. This is consistent with the theory that a user can pay the most to occupy a site since the user can place it into productive use immediately. An astute investor or developer values the property based on what the user can afford to pay to occupy the space.

The Graaskamp Legacy reiterated the Graaskamp courses of action that exist in real estate feasibility, which include the site in search of user, site selection, and an investor looking for an investment property.For years, the Chicago Housing Authority was the poster child for development gone wrong. Cabrini Green, for example, became  a breeding ground for crime and was far more dangerous than the housing it replaced. On the bright side, Austin, Texas, shows how good development planning enhances a city's prosperity enticing more companies and employees.

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International Beat


London's Big Deal London's office space market is about to get a whole lot bigger with 51 new developments starting construction in the six-month period from October 2015 to March this year. It's the highest level of construction in 20 years, according to Deloitte Real Estate's London Office Crane surv

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International Beat


Australia's Big Deal In what is being called the biggest direct real estate deal in Australia's history, China Investment Corp. purchased nine office towers in Melbourne, Sidney, and Brisbane, from Morgan Stanley for around $1.8 billion, making the sovereign wealth fund one of the largest office landlords

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