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The Baltic States serve as a natural bridge for East-West traffic, making it an ideal place for foreign companies to use as a base for expanding business operations, both to Western Europe and Eastern Russian markets.The Baltic States continues to be one of the most attractive markets in Europe for foreign investors. One major advantage of the three Baltic countries is their strategic location at the crossroads between Eastern and Western Europe.
Produced by: NAI Global, posted by NAI Baltics -2008
San Diego has a diversified economic base driven by biotechnology/life sciences, telecommunications, tourism and a large military presence.
San Diego’s coastal location, wonderful climate and quality of life have fueled steady population and economic growth since World War II.
Produced by: NAI Global, posted by NAI Baltics -2008
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Global Spotlight Issue #42 - Copenhagen, Denmark Copenhagen is a center for business and science, not only in Denmark, but also in the Oresund Region and Scandinavia.
Produced by: NAI Global, posted by NAI Baltics -2008
Johannesburg is the economic and financial hub of South Africa and accounts for 40% of economic activity of the wealthiest province in South Africa. The South African property market outperformed European property for the second year in a row. Regional shopping centers are still the most highly regarded property type, followed by industrial leaseback and decentralized offices. Cap rates still point south, and are unlikely to face upward pressure in the near term. Inventory levels rose strongly in manufacturing as well as in the wholesale, retail and motor trade sectors, consistent with the general buoyancy of demand in the market. The manufacturing sector is expected to continue to perform well, which should sustain low industrial vacancies and support the upswing in industrial rentals.
Produced by: NAI Global, posted by NAI Baltics -2008
Prague has been the political, cultural and economic center of the Czech state for over 1,000 years. The office market is outperforming previous years with an increase in supply to 250,000 SM. Office demand is dominated by the finance, professional services, manufacturing and IT sectors. Vacancy rates in older buildings continue to rise as tenants seek modern office space with good technical specs, large floor plates, convenient access by car and public transport and ample parking facilities. Retail is a strong performer with 20+ shopping centers opening over the last few years. Total inventory has grown to approximately 1.5 million SM. Demand is fueling strong real wage growth and relatively low inflation and an improving unemployment situation. Six new centers are scheduled to open before the end of 2008.
Produced by: NAI Global, posted by NAI Baltics -2008
With 2.7 million residents, Tampa Bay is the second largest metropolitan area in Florida and the third largest in the Southeastern United States. The Tampa Bay area is experiencing tremendous population growth, making the market a driving force in Florida's economy. The market is primarily divided into three separate but equal geographical locations, Pinellas, Hillsborough and Pasco/ Hernando counties. Pinellas County includes the coastal region with beach frontage and tourism/hotel-based economies. The downtown St. Petersburg and Clearwater markets in Pinellas County have experienced a transformation from a once predominantly retirement-based population to a young urban professional demographic. Downtown St. Petersburg is leading the way with a core redevelopment program that has more than 12 multi-story residential condominium and mixed use properties under construction.
Produced by: NAI Global, posted by NAI Baltics -2008
Chennai, the third largest commercial and industrial center in India, has emerged as a multifaceted metropolis. Chennai’s economic growth is fueled by the automobile, software development & business process outsourcing industries, traditional industrial houses of TamilNadu and Telecom. Other key industries include hardware manufacturing, financial services, banking, petrol-chemicals and textiles. Approximately 50% of the total projected Commercial /IT space supply has either been pre-leased or already absorbed, indicating the robust demand in the city. Due to increasing corporate interest in Chennai, the city is expected to see total supply increase to 9.1 million SF in 2007.
Produced by: NAI Global, posted by NAI Baltics -2008
Chicago is a major financial center with the second largest central business district in the United States. The outlook for the downtown office market remains positive. Leasing activity remains strong, especially in the West Loop. Several major tenants are looking at other proposed buildings for future requirements. Rental rates are beginning to edge upward as unencumbered quality space on higher floors all but disappears. Vacancy rates are expected to continue to fall for the next six months. The outlook for most of the suburban office markets is also positive. Several users continue to shop for large blocks of space in the North Suburbs, the O’Hare Area, and the East-West Corridor. Construction continues on four projects in the North Suburbs. Rental rates and concession packages will reflect the growing optimism of much of the market.
Produced by: NAI Global, posted by NAI Baltics -2008
Istanbul has been called the capital of "Euro–Asia" and acts as an international gateway for several regions. Rapid improvement in the Turkish economy has had a positive impact on the commercial real estate market. Buy ratings for office, industrial /warehouse and retail put Istanbul in the top three for all three property types. Istanbul is also Turkey’s top-ranked development market. Rental rates for Grade A prime office space reached US$30 per M² per month while yields were in the 11%-12% range. Total Grade A stock in the CBD is around 1.3 million M², of which 1.05 million M² is located in the European CBD and 250,000 M² in the Asian CBD. The 3.7% growth rate in office inventory in 2006 is the highest level seen in the last three years.
Produced by: NAI Global, posted by NAI Baltics -2008
The Las Vegas Valley has emerged as a multi faceted metropolis that reaches far beyond hotel casino mega resorts. With more than 1.8 million residents, the greater Las Vegas region boasts a strong workforce and favorable business climate with no state corporate income tax or personal income tax. Due to significant population growth, commercial real estate markets continue to flourish and mitigate the majority of negative impacts associated with a normalizing housing market. Many commercial sectors have reported record-setting construction and absorption activity during the past several quarters. The office, industrial and retail sectors have more than doubled during the past decade with continued expansion expected.
Produced by: NAI Global, posted by NAI Baltics -2008
Kolkata, the former capital of British India, has emerged as the favored destination for IT & ITES companies among the Tier II & III cities in India. The Kolkata office market is driven by high demand for large office space in IT sectors. The off-CBD locations, Salt Lake and Rajarhat, have become the “preferred destination” of global corporations in IT and electronics. Most major national and international companies such as TCS, IBM, PWC, Cognizant, Computer Associates,WIPRO, and NIIT have started their operations there. Approximately 20 million SF of new commercial space is expected over the next two to three years, with much of the new supply concentrated in large IT Parks by national and international developers like DLF, Unitech, Ascendas and Keppel Land at Salt Lake sector-V and Rajarhat.
Produced by: NAI Global, posted by NAI Baltics -2008
The Greater Boston real estate market houses some of the world's most prestigious universities, hospitals, biotech and technology companies and financial services firms. The commercial real estate sales boom of 2006 continued into 2007, with record-setting transaction volume across almost all property types. According to Real Capital Analytics, the Boston office market has seen a 197% increase in transaction volume with $11.4 billion in sales in the past 12 months. The downtown Boston office market has tightened. Overall class A and B vacancy has declined to 9.1%, while rental rates have increased significantly to an average of $43 per SF. Proposals for class A space in the Financial District and Back Bay are asking up to $75 per SF and $90 per SF, respectively.
Produced by: NAI Global, posted by NAI Baltics -2008
Hong Kong maintains a highly capitalist economy built on a policy of free market, low taxation and government non-intervention. Demand for office space in Hong Kong’s CBD has been very strong demand in the last several quarters, leading to asking rents as high as HK$153/SF/month. Rentals have been supported by a lack of visible supply in Central district and continued demand from existing and new financial tenants who remain willing to pay for the premium location. Vacancies in Central remain below 4%. These strong supply-demand forces are compensating for the trend towards decentralization, where larger existing tenants are looking to move back-office operations to neighboring areas to reduce costs. Approximately 5.5 million SF of new Class A office space will come online in 2007 and 2008, with 90% located in secondary districts.
Produced by: NAI Global, posted by NAI Baltics -2008
Kuala Lumpur is Malaysia's commercial and financial capital and home to the tallest twin towers in the world. The Petronas Twin Towers stand at a majestic 88 stories and 1,483 feet high. The city continues to thrive on Malaysia’s strong economic growth and is currently experiencing an unprecedented real estate boom. Service apartments in the prime Golden Triangle sell for $295 per SF, up almost 35% from a year ago. The soon-to-be-completed ‘The Binjai’ condominiums (171 units) are expected to be priced above $443 per SF. Strong demand for Class A office space is driven by better corporate earnings, liberalization of the financial services sector, and the entry of foreign groups and the expansion of the oil & gas sector. Petronas Twin Towers is securing rents above $2.95 per SF per month. The occupancy rate in Class A buildings is above 90%.
Produced by: NAI Global, posted by NAI Baltics -2008
Kiev is the country's largest, wealthiest, and most service–oriented economy. It outperforms the rest of the country by a significant margin in economic output, corporate presence and share of foreign direct investment. Ukraine’s strong economic growth is creating high demand for office space. The market has a total inventory of 790,000 square meters.With occupancy rates averaging 97%, rental rates are increasing 10%-15% annually. Approximately 200,000 square meters of high-quality space is in the development pipeline for 2007. According to the AT Kearney report, Ukraine is the 4th most promising retail market in the world and the most rapidly growing retail market in Central and Eastern Europe. Retail trade turnover grew by 23.5% in 2006 to total US $31 billion, doubling the previous year’s growth. With virtually no vacancy, rental rates increased by 50%. Yields in the retail segment are high relative to Eastern European markets or Moscow, ranging from 13%-15% for shopping centers.
Produced by: NAI Global, posted by NAI Baltics -2008
There is increased investment interest in commercial real estate in Sofia, driven by relatively high yields. Considerably high yield levels of 8% to 11% make Sofia very attractive to investors. The average yield level for commercial property throughout Europe is approximately 5.5%. Sofia is the fastest-growing city in Bulgaria because of internal migration. It receives about 60% of the total FDI flow for Bulgaria. There is no shortage of available office space in Sofia. However much of the vacancy is still ….
Produced by: NAI Global, posted by NAI Baltics -2008
Louisiana's adopted recovery theme of Recover, Rebuild, Rebirth rings true for the New Orleans economy and for the spirit of the people of New Orleans. Recent population estimates indicate a 14% increase in New Orleans' population over the past seven months, as some of the hardest hit areas are now beginning to see tangible improvements to city services. For the most part, the suburban population centers to the west of the city have fully recovered. St. Bernard Parish, which had 66,000 residents pre-Katrina is now back to about 28,000 residents.
Produced by: NAI Global, posted by NAI Baltics -2008
Buenos Aires is the financial, industrial, commercial and cultural hub of Argentina. Real estate markets are experiencing an upward trend as the Argentine economy heads toward a strong growth path. Argentina recorded 40% GDP growth over the past four years. Vacancy rates for Class A Office space have dropped to single digits and prices continue to rise. Demand is firm and supply has not expanded enough to keep pace with demand. This trend will prompt more development activity, especially in refurbishment of older buildings, as there is a lack of land in the downtown market. The industrial markets have seen a similar trend with generally low vacancy, firm prices with…
Produced by: NAI Global, posted by NAI Baltics -2008
With economic, political and social conditions that provide a fertile business environment, the Bahamas is a paradise for investment. Over 60%of the GDP in the Bahamas is generated from tourism and hospitality businesses. However, the office market in Nassau is driven by offshore banks and financial institutions, including UBS, Credit Suisse and Lombard Odier Darier Hentsch. The Bahamas has become a particularly favorable venue for international investment. It has established generous legal incentives to attract foreign investors and has streamlined government bureaucracy for expeditious project approval.
Produced by: NAI Global, posted by NAI Baltics -2008
Seattle is a flourishing metropolis driven by a diverse and resilient economy, strong entrepreneurial spirit and historically vital business sectors. Technology, globalization and location/quality of life are the big three factors that drive the local economy. Seattle also boasts a favorable business development environment and attractive personal tax climate, which includes: no personal income tax, low property tax and no tax on interest, dividends, or capital gains help its growth. Construction in the office, industrial, retail, and multi family sectors is a significant driver in the region. In downtown Bellevue alone, over 2 million square feet of office space, 500,000 square feet of retail and 2,100 multi-family units were delivered in 2006.
Produced by: NAI Global, posted by NAI Baltics -2008
Boise has received national attention from several publications as being a great city to live and work. Boise’s office market continues to grow with strong absorption and new owner occupied construction. Several new projects have been completed in the Downtown, Central Bench, Meridian and Eagle submarkets adding to the total office inventory of 11 million SF. Lease rates currently average $18.80 SF and are expected to increase slightly, due to the increased costs of construction materials, taxes and utilities. There has been a lot of activity in the industrial market over the past year resulting in the…
Produced by: NAI Global, posted by NAI Baltics -2008
Vienna has historically been a focus for commerce between East and West Europe. New supply represents only 1.9% (190,000 square meters) of the total office inventory. Large deals and high turnover in the small and medium-size segments are expected to produce leasing volume in excess of 370,000 square meters in 2007. _ Top rents for high quality office space are <22 per square meter per month; the average rent in Vienna is <11.70 per square meter per month. Vienna the host City for the "REAL Vienna" - important event to participate for CEE /SEE real estate professionals.
Produced by: NAI Global, posted by NAI Baltics -2008
Santiago is the industrial and financial center of Chile and one of the main financial centers of South America. The Chilean economy has served as a foundation for a stable real estate market and its foreign investors. The real estate sector is expected to grow between 4% and 5% in 2007. Strip malls have emerged as an increasingly important retail commercial property type. In Santiago, over the past five years, more than 20 strip centers with at least 2,000 square meters each were developed. Rental rates for these strip malls per square meter are between US $19.20 and US $28.50.
Produced by: NAI Global, posted by NAI Baltics -2008
San Francisco is the banking and financial center of theWest - a vibrant hub of regional, national and global business. San Francisco County’s office market continues to experience steady recovery with declining vacancy and escalating rents. Market-wide vacancy declined to 10.6% at year-end 2006. The year achieved more than 1 million square feet of positive net absorption with 1.3 million square feet. The annual average asking rate for the City’s office product was $34.26 per square foot full service at the close of 2006, representing a gain of $4.07 from the previous year.
Produced by: NAI Global, posted by NAI Baltics -2008
Paris is France's premier centre of economic activity. France has been established as a key market for international property investment, increasingly attracting foreign investors. Investors have shown interest primarily in new products and sectors such as retirement and nursing homes, clinics and apartment hotels. To date, the French have been the leading investors in the market, with more than 50% of acquisitions.
Produced by: NAI Global, posted by NAI Baltics -2008
New York City is a global center for business and commerce and one of the most important financial centers in the world. A tenant can expect to pay $175 per SF for a suite on the top floor of the GM Building, but that’s still a bargain compared to London’s West End, where a recent deal at 77 Grosvenor topped $230 per SF. Overall demand for office space is at its highest in Midtown, where Class A space is in short supply and asking rents are averaging $58.57 per square foot. The overall rates are boosted by the Plaza District, where average rents are $76.40 per SF.
Produced by: NAI Global, posted by NAI Baltics -2008
Säo Paulo is one of the most important financial centers in Latin America. With an economic infrastructure that was established over a century ago, the city has an integrated industrial base, a network of services linked to the main world centers and extensive resources for information, leisure and culture. Many multi national companies have their national or continental headquarters in São Paulo, and the city provides the headquarters for more German and
Produced by: NAI Global, posted by NAI Baltics -2008
Toronto is North America's fourth largest financial marketplace and has been deemed the second most creative city in the world. The Greater Toronto Area (GTA) is the fourth largest industrial market in North America with an industrial inventory of over 690 million square feet. Growth has occurred in the suburban cities of the GTA rather than the city proper; in the last 15 years the suburbs has attracted 800,000 new jobs while the city has lost 100,000.
Produced by: NAI Global, posted by NAI Baltics -2008
Frankfurt am Main is the leading financial marketplace in continental Europe. Frankfurt is the financial and transportation center of Germany. More than 300 national and international banks are represented in the main metropolis. According to a ranking list produced by The University of Liverpool, Frankfurt is the richest city in Europe by GDP per capita.
Produced by: NAI Global, posted by NAI Baltics -2008
Orange County has been one of the hottest markets in the nation for commercial real estate in the last three years. The economy in Orange County is supported by a cross-section of industries, port activity, international trade and a combination of old-economy business and new high-tech businesses. Office space continued to be in demand in 2006. The overall office vacancy rate dropped from 8.3% to 6.8% and lease rates rose nearly 3%. New office developments are prepared to come on line in 2007.
Produced by: NAI Global, posted by NAI Baltics -2008
Iceland's standard of living is ranked amongst the highest in the world. From 1996 to 2005, economic growth averaged 4.5% in Iceland, considerably faster than the 3% average growth rate among the Organization for Economic Co-operation and Development (OECD) countries. Over the same period, the growth of per capita real disposable income averaged 4.5% also significantly more than the OECD countries.
Produced by: NAI Global, posted by NAI Baltics -2008
China's successful bid to host the 2008 Olympics has had a profound effect on Beijing's economic and physical development. Despite Chinese regulations, real estate has been growing and will continue to do so. In 2005, it was estimated that US$5.5 billion was invested in the China real estate markets. The Olympic Games are expected to attract $16.65 billion in direct investment and create 1.82 million new jobs. As a reflection of this, the city government of Beijing predicts that the GDP will grow at a hefty 9% per year until 2010.
Produced by: NAI Global, posted by NAI Baltics -2008
Mexico City is often seen as the first stop for foreign investors in Mexico. Mexico City, capital of Mexico, is one of the world’s largest cities. It hosts most of the major corporate headquarters from various global sectors represented in the country. Returns on investments, vary from 9-14% depending on the tenant risk factor and property quality. Returns on industrial investments are generally in the 9-11% range and the riskier retail properties are in the 10-14% range.
