Commercial Investment Real Estate July/August 2018 | Page 44

INTERNATIONAL
B E AT
Cannon Bridge House, a distinctive 286,000-sf
London office building, has been sold to Seoul-
based FG Asset Management and The Valesco
Group, headquartered in London, for $335
million. The seller, Blackstone, was assisted by
real estate firm HFF and Savills. The property
consists of two interconnected buildings with a
landscaped roof garden of more than an acre.
One of the buildings, the River Building, was
recently refurbished and was 100 percent pre-
CRE Growth Potential in
European Cities
In a recent survey of the Loan Market Association’s mem-
bership, Frankfurt topped the list of European cities outside
of London that offered the greatest potential for growth in
commercial real estate in a post-Brexit environment.
20.5%
Dublin
use districts and disposable incomes rise, restaurant dining
also increases. Knight Frank and Newmark Knight Frank 176.9%
forecast five cities where spending on eating
out could surge in the next 10 years.
136.7%
% Change on Dining-Out
Spending, 2017–2027
96.0% 97.0%
Beijing Shanghai
82.8%
14.8%
Berlin
11.8%
Amsterdam
8.0%
Other
Paris
primarily in the financial services sector.
Let’s Eat! As cities focus on developing mixed-
37.5%
Frankfurt
Atrium Building, is 100 percent leased to tenants
7.4%
Source: Loan Marketing Association
Nairobi
Mumbai
Bengaluru
(Bangalore)
Source: Oxford Economics
Global Markets to Watch Office and building amenities are playing a larger role
in site selection decisions globally, as corporations look to attract and retain talent. “A primary driver for this
phenomenon is the acceleration of co-working and shared space,” says JLL’s May 2018 Global Market Perspective
report. “In Asia Pacific, leasing volumes from co-working operators rose some 50 percent year-over-year in
the first quarter, boosted by WeWork’s recent acquisition of Naked Hub, one of the region’s largest co-working
operators. In the U.S., WeWork executed 33 leases during Q1, while Spaces signed 34 leases totaling 1.3 msf in
the same period.” JLL also notes that demand for coworking spaces is increasing in Europe as well, as alternative
employment models account for 30 percent of the workforce in some European markets.
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July | August 2018
COMMERCIAL INVESTMENT REAL ESTATE
London’s
BIG DEAL
let to Deliveroo and Kobalt Music; the other, the