Market Data

International Beat(7)

New York’s Big Deal

Spanish clothing retailer Zara paid $324 million for the former NBA stores at 666 Fifth Avenue in New York, which will become its North American flagship store. At $8,300 psf, a record even at New York prices, Zara’s owner Inditex has a retail condo deal for 32,000 sf that includes the buyout of the NBA stores’ remaining lease of less than three years.

“The delivery of income and growth is one of the key qualities attracting investors to [London’s prime office] properties in light of other asset classes.”

Phil Tily, IPD’s U.K. and Ireland managing director

Markets to Watch

Though Japan is still struggling with the physical damages of the Great Tohoku Earthquake of 2011, the disaster creates opportunities for foreign and domestic private capital, according to RREEF Research. Japan’s government may be forced to sell public assets to pay for reconstruction, and new properties built to stronger construction standards also will capture demand. In fact, only about 0.02 percent of Japan’s real estate investment trusts’ holdings suffered damages, indicating that a sizable portion of these institutional assets have earthquake-resistant construction.

Mexico City will see an almost 40 percent increase in office stock over the next five years, according to Jones Lang LaSalle. While tenant demand is strong, the new supply may outstrip it, causing vacancy rates to rise from 12 percent to around 19 percent.

Crédit Agricole Private Banking Miami, a division of France’s largest banking group, has leased the entire 37th floor of 600 Brickell, Miami’s first LEED Platinum building, which opens in August. The 20,137-sf, 12-year lease “emphasizes the strategic location of Miami,” said Mathieu Ferragut, Crédit Agricole’s general manager. This is the building’s first signed lease.

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