Market Data

International Beat

Japan’s Big Deal

Japan’s second-richest man and founder of the telecom company SoftBank bought Tokyo’s landmark Tiffany Building in the luxury Ginza shopping district for $326 million, well above the $257 million asking price, according to Reuters. Masayoshi Son’s pricey purchase from owner Asia Pacific Land beat out several other institutional investors and carried a cap rate of 2.6 percent, reminiscent of the expensive deals from Japan’s 2006 property boom. In another well-publicized 2013 deal, SoftBank purchased U.S.’s No. 3 telecom company Sprint for $21.6 billion.

“As expected, most of the cities with high productivity, including London, Paris, and Frankfurt also have high occupancy costs. … Smaller markets such as Copenhagen, Brussels, and Rome are shown to be especially affordable. All three are more affordable than the European average, providing a good alternative for tenants looking for expansion in key sub-regions within Europe.”

— Magali Marton, DTZ head of European research

Markets to Watch

More than three-quarters of small and mid-market companies expect an increase in the U.K.’s commercial real estate market activity in the next three to six months, according to the Commercial Property Confidence Monitor by Lloyds Bank. This survey of 500 real estate professionals shows the highest level of confidence since 2010, with Scottish respondents being the most confident. Ninety percent of Scotland’s respondents anticipate an increase in market activity — a strong rebound from the 9 percent recorded in 2012. London, Manchester, and Birmingham, England, were chosen as the top three destinations for commercial real estate investment over the coming six to 12 months.

Mexico and Chile have accounted for 77 percent of Latin America’s hotel transactions through end of 3Q13, according to Jones Lang LaSalle. Overall Latin America has doubled its volume of hospitality activity due to an improving economy and a lower risk profile.