Market Data

International Beat

England’s Big Deal

Until recently, office acquisitions outside of London were rare. But the sale-leaseback of One Angel Square in Manchester, England, for £142 million, about $217 million, by German-based RREEF Real Estate, signals that foreign investors are moving into smaller international markets in search of high-quality product. Completed in 2012, the 329,218-sf building is considered one of Europe’s most sustainable properties. Overall Europe attracted $40 billion in direct investment in 1Q13, with $11.5 billion spent in the major markets of London, Paris, and Moscow. More than 50 percent of the transactions in those cities were from foreign investors, with North American investors spending $3 billion on European properties in 1Q13.

“Aside from Russia and Turkey, other countries expected to experience double-digit growth in shopping centre floor space by the end of 2014 include Croatia, Bosnia and Herzegovina, Bulgaria, and Ukraine, emphasizing the increasing influence of Central and Eastern Europe.” — Neal Best, associate director of Cushman & Wakefield’s European Research Group

Markets to Watch

Lima, Peru, has one of the world’s tightest office markets, with a 2012 vacancy rate of just 1.1 percent, according to Jones Lang LaSalle. Peru’s 6.3 percent growth rate is benefiting from effective government economic management. Lima’s fast-growing business center will add close to 340,000 sm of office space in the next two years.

Puerto Rico marked its first positive economic growth since 2007, yet the meager 1 percent GDP growth means the island still has far to go to improve its world fiscal standing, according to Jones Lang LaSalle. San Juan’s 2012 office vacancy was 17 percent, with only 5,000 sm absorbed during the year.