Commercial Investment Real Estate September/October 2017

INTERNATIONAL B E AT Comparative Shopping for Asia-Pacific Investors London’s Big Deal A European office REIT and a Chinese property developer joined 35% $391 million. NorthStar Realty Europe Corp. and China Resources Land 30% Limited acquired 20 Gresham Street from AXA Investment Managers. This investment is the first commercial real estate investment in Europe for forces to buy a trophy office building in London for approximately 25% 20% 15% 10% CRL. Located in London’s largest business district, the 242,807-sf prop- 5% erty is close to St. Paul’s Cathedral and the Bank of England. The building 0% is fully leased with blue-chip financial service firms, which include ICBC Standard Bank Plc, TSB Bank plc, Sacker & Partners LLP, and TLT LLP. Pacific South and Central and Eastern Central Europe America North Developed Emerging Western Asia Asia Europe America 2015 2016 2017 Source: CBRE Asia Pacific Investor Inventions Survey 2017 U.S. Cross-Border Flow Slows Down CHN Canada Europe $15.1b Germany $5.6b UK $3.1b Switzerland $3.0b France $1.5b Spain $0.8b GBR Asia CHN HKG AUS China $16.5b Singapore $5.4b South Korea $4.5b Japan $3.4b Hong Kong $2.6b Rest of World Mid-East Israel $2.8b Qatar $1.9b Saudi Arabia $1.8b Kuwait $1.0b SYC Global Markets to Watch Rents in Grade A office buildings in Beijing’s CBD are expected to decline 15 percent by 2021 as supply continues to rise in 2017, according to the China Daily. The vacancy rate for premium office buildings in Beijing rose to 6.1 percent in Q1 2017, up 0.5 percent from Q4 2016, leading to a 0.2 percent decrease in the average monthly rent, according to Savills in London. High-end leasable office space has grown to 10.08 million square meters in Beijing. 42 September | October 2017 COMMERCIAL INVESTMENT REAL ESTATE Past four quarters Source: Real Capital Analytics

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