Sydney's Big Deal
Blackstone Group LP acquired two office towers in Sydney's central business district for $1.04 billion. The deal is Blackstone's biggest in Australia. The buildings were acquired from Scentre Group, which owns shopping centers in Australia and New Zealand. Scentre developed the towers in 2011 and will retain ownership of its Westfield Sydney Mall and Sydney Tower in the complex. Blackstone will be granted a 299-year leasehold for the office towers. Scentre will use part of the proceeds to fund an $800 million Australian share buyback.
Source: Sydney Morning Herald
Poland Warehouse Stock Grow
The total stock of the warehouse and logistics sector in Poland grew by more than 40 percent over the last two years. The trend looks to continue, although the 1Q2019 vacancy rate rose slightly and growing construction costs still affect rental levels.
Under Construction: 23.1 million sf
Total Stock Delivered: 5.45 million sf
Vacancy Rate: 5.8%
Rent Range (square meters /month): $2.78-$5.94
Source: BNP Paribas Real Estate
Ready for the Worst
Cushman & Wakefield's Prepped Cities Index measures a city's ability to create a safe environment in eight different areas, including cybersecurity, terrorism, susceptibility to natural disasters, and sustainability. Focused on the office sector, the index examines both the built environment and governmental planning and preparedness. The best-prepped cities in the world:
- San Francisco
- Washington, D.C.
Too Many Tourists?
The tourism industry is booming; in 2018, tourism and travel generated $8.8 trillion in revenue and accounted for 10.4 percent of global activity. However, this growth has come with a price. JLL reports that many areas in southeast Asia and Europe are looking for ways to cope with “overtourism.” One island in the Philippines, for example, was closed to tourists for six months in 2018 in order to clean up damage from an excessive number of tourists, and new guidelines issued in December limit the daily number of arriving tourists to 6,400. New city-center hotel construction has been banned in Barcelona and Reykjavik, Iceland, while Bali now collects a $10 tourist tax to help preserve the environment.
Global Markets to Watch
The World Economic Forum's report, “Making Affordable Housing a Reality in Cities,” released in June, highlighted difficulties in the global struggle to provide sufficient affordable housing. Recent studies estimate 330 million urban households are in substandard dwellings or are financially challenged by housing costs. More than half of Africans live in substandard conditions, while one in four in China and India live in informal dwellings. By 2025, as many as 1.6 billion may face such challenges.
Source: World Economic Forum
For more on this topic, check out CCIM Institute's “Global Commercial Real Estate Bootcamp” course.