Market Data
International Beat(2)
Brazil's Big Deal
U.S. developer Tishman Speyer already has leased half of the first-phase office space in the Castelo Branco Office Park, a six-tower, 27-acre development in suburban Sao Paulo.
BRICs Lead the Way
The BRICs — the combined economies of Brazil, Russia, India, and China — are leading the global real estate recovery, according to Jones Lang LaSalle's Global Market Perspective. Those economies are expected to grow by an average of 8 percent this year. Goldman Sachs predicts that nearly two billion BRIC residents will join the middle class by 2030, spurring demand for residential, retail, and warehouse properties. Foreign investors are already returning to these countries' top cities.
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Markets to Watch
Brazil – This South American powerhouse with an estimated 5 percent annual growth rate is attracting both foreign and domestic investors to its top cities of Rio de Janeiro and Sao Paulo, says Jones Lang LaSalle. Rio was one of the few major global markets to show double-digit class A office rent growth in 2009.
London – The economy of Europe's top financial center should start to grow this year, with new financial-sector jobs sustaining its improving office space demand, according to CB Richard Ellis. CBD vacancy rates have fallen from 15.6 percent to 13.5 percent. However, new users soon may be squeezed out of the market with only 2.3 million sf of new space coming on line this year and 1 million sf in 2011 — the lowest increase in 25 years. This limited supply should set the stage for rising rents in 2011 and 2012.
"58% of U.S. investors are domestically focused, with 16% preferring Asia and 12% targeting Europe."
Source: Raymond Torto, global chief economist for CB Richard Ellis
Reading Is Fundamental
The new library in Denmark's main port city of Aarhus is a good example of how today's civic facilities can be destination draws for revamping downtowns. This "urban mediaspace" will anchor an industrial waterfront redevelopment that will include retail and restaurants. To find more about mixed-use libraries, read "New Libraries Revitalize Cities" at www.miller-mccune.com.