Commercial Investment Real Estate November/December 2017 | Page 44

INTERNATIONAL
B E AT
Top-Ranked
International
Retail Rents
New York City’s Big Deal
HNA Group, a Chinese conglomerate,
purchased a trophy office building at
245 Park Avenue in New York from
Brookfield Property Partners and the New
York State Teachers’ Retirement System
for $2.21 billion, or $1,227 per square foot.
The deal for the 1.8-msf property is one of
the highest prices ever paid for an office
building in Manhattan, and shows how
Chinese investors are playing a major role
in the U.S. commercial real estate market
despite more stringent capital controls
at home. Very few office properties have
crossed the $2 billion threshold, according
to The Real Deal. The lavish-spending
HNA Group also owns a 25-percent stake
in Hilton Worldwide Holdings and recently
raised its stake to 9.9 percent in Deutsche
Bank. A consortium of banks, led by
JPMorgan Chase, financed the transaction
with a $175 million loan.
➊ New York City $3,240 psf
➋ London $1,753 psf
➌ Hong Kong $1,698 psf
➍ Paris $1,315 psf
➎ Tokyo $1,210 psf
➏ Sydney $1,030 psf
➐ Beijing $1,002 psf
➑ Zurich $882 psf
➒ Guangzhou, China $781 psf
➓ Singapore $765 psf
Source: CBRE Research
June 2017 1
March 2017 2
85%
71%
65%
50%
56%
56%
55%
39%
Geopolitical Instability
Threatens Global
Economic Growth
Source: McKinsey & Company
North America
Asia-Pacific
Europe
Middle East and
North Africa
1 In the Middle East and North Africa, n=57; in Europe, n=343; in North America, n=301; and in Asia-Pacific, n=110.
2 In the Middle East and North Africa, n=81; in Europe, n=601; in North America, n=433; and in Asia-Pacific, n=185.
Global Markets to Watch Different countries have varying levels of current
technology automating work activities. Overall, Japan has significantly higher risk, at 55 percent of hours worked
compared to the 46 percent risk in the U.S. Much of the difference comes from Japan’s manufacturing industry,
which has an automation potential of 71 percent, according to the McKinsey Global Institute.
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November | December 2017
COMMERCIAL INVESTMENT REAL ESTATE
Survey of geopolitical instability as a risk to
global economic growth over the next 12
months; % of respondents, by office location.