Market Data

International Beat

New York City's Big Deal

HNA Group, a Chinese conglomerate, purchased a trophy office building at  245 Park Avenue in New York from Brookfield Property Partners and the New York State Teachers' Retirement System for $2.21 billion, or $1,227 per square foot. The deal for the 1.8-msf property is one of the highest prices ever paid for an office building in Manhattan, and shows how Chinese investors are playing a major role in the U.S. commercial real estate market despite more stringent capital controls at home. Very few office properties have crossed the $2 billion threshold, according to The Real Deal. The lavish-spending HNA Group also owns a 25-percent stake in Hilton Worldwide Holdings and recently raised its stake to 9.9 percent in Deutsche Bank. A consortium of banks, led by  JPMorgan Chase, financed the transaction with a $175 million loan.

Top-Ranked International Retail Rents

  1. New York City | $3,240 psf
  2. London | $1,753 psf
  3. Hong Kong | $1,698 psf
  4. Paris | $1,315 psf
  5. Tokyo | $1,210 psf
  6. Sydney | $1,030 psf
  7. Beijing |$1,002 psf
  8. Zurich | $882 psf
  9. Guangzhou, China | $781 psf
  10. Singapore | $765 psf
Source: CBRE Research 
Geopolitical Instability Threatens Global Economic Growth (Source: McKinsey & Company)

Global Markets to Watch

Different countries have varying levels of current technology automating work activities. Overall, Japan has significantly higher risk, at 55 percent of hours worked compared to the 46 percent risk in the U.S. Much of the difference comes from Japan's manufacturing industry, which has an automation potential of 71 percent, according to the McKinsey Global Institute.

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