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Monthly Archives: September 2014

Johnson Controls to Sell Building Management Unit

In a move to refocus on its core manufacturing and engineering business, Johnson Controls (NYSE: JCI) today announced it plans to divest its Global Workplace Solutions (GWS) division, a $4.3 billion business which provides on-site management of corpora…

GAME ON: News Corp.’s $950M Deal for Move Affirms Value of Real Estate Marketplaces

Announcing it wants to make online real estate “a powerful pillar of our portfolio,” News Corp., the global publishing giant headed by billionaire Rupert Murdoch, agreed to buy Move Inc., the operator of realtor.com and other US real estate web sites, for $950 million.

Under terms of the deal, Murdoch’s News Corp. and REA Group Ltd., a News Corp. affiliate that operates the leading residential property website in Australia, realestate.com.au, agreed…

Seoul Financial District Vacancies Rising With Job Losses

While new building construction has contributed to the rising office vacancies in Seoul, job losses seem to be dealing a large blow to Yeouido, the financial district. The lowest brokerage industry earnings since early 2005 were recorded, leading to slashing of domestic branches and a corresponding number of brokers being let go. At the end of Q2, the 24.8 percent Seoul office vacancy rate still pales in comparison to Wall Street’s during the height of the global financial crisis.

Investors have not been deterred – Seoul was the most active office market outside of Japan over the last year beating out Singapore and Hong Kong by close to $7 billion. According to leading commercial real estate data and analytics firm Real Capital Analytics (RCA), the cap rate for Seoul office space was just 5.67 percent with the price per square foot increasing to $400.3 at the end of last month.

Some expect the overall Seoul vacancy rate to drop over the next year due to relocations by large tenants like IBM Korea. The recovery for Yeouido will still rely on main tenants, the brokerage houses and other financial institutions to regain their strength and profitability.

Seoul Financial District Vacancies Rising With Job Losses

While new building construction has contributed to the rising office vacancies in Seoul, job losses seem to be dealing a large blow to Yeouido, the financial district. The lowest brokerage industry earnings since early 2005 were recorded, leading to slashing of domestic branches and a corresponding number of brokers being let go. At the end of Q2, the 24.8 percent Seoul office vacancy rate still pales in comparison to Wall Street’s during the height of the global financial crisis.

Investors have not been deterred – Seoul was the most active office market outside of Japan over the last year beating out Singapore and Hong Kong by close to $7 billion. According to leading commercial real estate data and analytics firm Real Capital Analytics (RCA), the cap rate for Seoul office space was just 5.67 percent with the price per square foot increasing to $400.3 at the end of last month.

Some expect the overall Seoul vacancy rate to drop over the next year due to relocations by large tenants like IBM Korea. The recovery for Yeouido will still rely on main tenants, the brokerage houses and other financial institutions to regain their strength and profitability.

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