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.
delivery of income and growth is one of the key qualities attracting investors
prime office] properties in light of other asset classes.”
Phil Tily, IPD’s U.K. and Ireland managing
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
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.