Market Data

International Beat

Rome’s Big Deal

Low-cost clothing brand H&M is taking over Italian-born Benetton’s flagship store in on Via Tomacelli in central Rome. The Swedish company purchased the former Unione Militare landmark building for $235 million. The 1901 landmark building was recently renovated with the addition of a glass dome designed by well-known Rome architect Massimiliano Fuksas. When the store opens this year, it will be H&M’s 108th location in Italy, joining such well-known global brands as Zara and the Gap.

“There is good reason to be optimistic about leasing activity in 2014, as the world economy regains some vigour, business confidence improves and strong corporate balance sheets encourage increasing capital expenditure.”

— Jones Lang LaSalle, Global Market Perspective, 3Q13

Markets to Watch

Office rents in China decreased substantially during the first half of 2013, according to DTZ Research. A weaker economy and tenants nervous about spending have pushed landlords to lower rents. The exception is Shenzhen, China, which saw an 8 percent rent increase in 1H13, due mainly to a strong finance company market and a flight to quality by major tenants.

Mexico recorded $1.5 billion in transactions in the first half of 2013, an increase of 18 percent over 1H12, according to Jones Lang LaSalle. New sources of domestic capital, a strong leasing market, and a solid economic performance pushed it past Brazil, Latin America’s former hot spot. Brazil’s transaction volume shrank to $800 million in 1H13, down from $2 billion in 1H12.