Commercial Investment Real Estate March/April 2019

INTERNATIONAL B E AT Vienna — Kohlmarkt Australia’s Big Deal $2,250 Delaware North, a Buffalo, N.Y.-based hospitality management and food service company, has signed an agreement to Rent psf/year 2Q2018 acquire SKYCITY Darwin in Darwin, New York — Upper 5th Avenue Territory, Australia, $1,744 from London Northern — New Bond Street Entertainment Group. $1,519 The Paris — Avenue SKYCITY des Champs Elysees $1,466 is a Milan — $188 Via Montenapoleone million Australian purchase $1,219 Tokyo — Ginza 30-acre resort that includes a casino, $964 Sydney — Pitt Street Mall four restaurants, a beachfront resort with $908 Seoul, South Korea — Myeongdong a 152-room hotel, and conference space. $854 Zurich — Bahnhofstrasse $515 Affordable Offices Up-and-Coming European Sectors While Hong Kong leads the list of the most expensive office rents among 72 city submarkets surveyed by JLL, the following are the most affordable. Co-living developments offer the best prospects for investment and development in Europe, according to a recent PwC/Urban Land Institute survey. Respondents representing investors, fund managers, developers, and other real estate profes- sionals ranked sectors on a 1 to 5 scale, with 5 being excellent. Occupancy Costs (U.S. dollars psf/year) $20 Nairobi, Kenya Kuala Lumpur, Malaysia $29 $31 Manila, Phillipines Chengdu, China $35 $40 Source: JLL, “Global Premium Office Rent Tracker 2018” Co-living Main Street: Top Retail Rents Logistics facilities Retirement/assisted living Flexible/services offices Data centers Sector Investment Development Co-living 4.40 4.25 Logistics facilities 4.34 4.24 Retirement/assisted living 4.34 4.22 Flexible/services offices 4.29 4.12 Data centers 4.36 4.11 $20 Source: PwC and Urban Land Institute, “Emerging Trends in Real Estate, Europe 2019” 4.4 4.25 City 4.34 4.24 Hong Kong 4.34 New York 4.22 4.29 London 4.12 Paris 4.36 4.11 Milan With average rents of $2,671 Development psf per Prospects Investment Prospects Tokyo year, Hong Kong’s Causeway Bay is the most expensive retail street in the Sydney world. New York tops the U.S. market. Seoul, South Korea Source: Cushman & Wakefield, “Main Streets Across the World 2018” Zurich Street/Area Rent psf/year 2Q2018 Causeway Bay $2,671 Upper 5th Avenue $2,250 Occupancy Costs (U.S. dollars psf/year) New Bond Street $1,744 $40 Chengdu, China Avenue des Champs Elysees $1,519 $35 Manila, Phillipines Via Montenapoleone $1,466 Kuala Lumpur, Malaysia Ginza $1,219 $31 Pitt Street Mall Nairobi, Kenya Myeongdong Johannesburg Bahnhofstrasse $964 $29 $908 $20 $854 Global Markets to Watch The top technology-occupier locations in Asia are Bangalore, India; Singapore; and Shenzhen, China, based on socioeconomic, property, and human factors, says Colliers International’s “Top Occupier Locations in Asia–Implications for Investors.” Colliers noted annual rent growth of 4 percent in Bangalore over five to 10 years and greater attention to South China, where investment in research and development has boosted Shenzhen’s tech base. 42 March | April 2019 COMMERCIAL INVESTMENT REAL ESTATE Johannesburg

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