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Monthly Archives: September 2015

Tempered Expectations: New ULI Forecast a Bit Less Bullish on CRE Than Six Months Ago

The latest Urban Land Institute/E&Y Real Estate Consensus Forecast issued this week reflected investor concerns over the effects of slowing global growth and stock market volatility, with dialed-back expectations for real estate performance and macroeconomic indicators such as job and GDP growth.

Despite some bearish sentiment on certain indicators, the group of 48 economists and analysts surveyed for the semi-annual outlook continued to foresee…

Canadian Investment in Manhattan Hits Record High

Canadians have spent about $3.85 billion this year so far in Manhattan real estate, almost doubling the $1.97 billion they bought in 2014, according to Real Capital Analytics (RCA), a commercial real estate data and analytics firm. The biggest investors from Canada are pension funds, including Canada Pension Plan Investment Board and the Ontario Municipal Employees Retirement System.

Over the past decade, Canada has purchased 81 properties in Manhattan for about $15.37 billion, surpassing any other cross-border country. United Arab Emirates has been the second biggest investor in the Manhattan market over the past decade, investing roughly $8.8 billion in 15 properties, with China only falling shortly thereafter in third, investing $8.1 billion in 30 properties.

According to Jim Costello, senior Vice President at RCA, “Canada has a lot of wealth and a limited number of real estate assets so investors look next door to the U.S. to make investments”, noting that there is a location, language and cultural connection that Canadian investors find appealing with the U.S. real estate market.

Real Capital Analytics Ranks Hawaii in Top 30 Global Markets for Commercial Real Estate Sales Volume

Hawaii was ranked in 26th place in the world in sales volume for the first half of 2015 according to Real Capital Analytics’ Global Capital Trends (GCT) report. Steven Williams, executive managing director at Real Capital Analytics (RCA), a commercial real estate data firm, said this is the first time Hawaii has made it into the top 30— realizing a 28% year over year change in comparison to the first half of 2014. It has risen in rankings from 130th in 2009 to 34th in 2014. Asia-Pacific capital helped drive Hawaii’s $3.7 billion in sales for the first half of 2015 with AustraliaSuper’s $1.375 billion partial interest purchase of General Growth Properties Inc’s Ala Moana Center portfolio in Honolulu. RCA ranked the portfolio as one of the top portfolio sales year to date in the Americas.

RCA pointed out that transaction activity has continued to grow strongly in the first half of this year due to continued value growth in many markets and few attractive alternatives in other asset classes. Compared to the first half of 2014, there was 17 percent growth for income-producing real estate in the first half of this year.

Capital Markets Round Up (Sept. 28) Qatar Investment Authority Ready To Invest $35 Billion in the U.S.

The Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, officially opened an office in the U.S. committing to invest $35 billion here over the next five years.

The office, based in New York, will enable QIA to develop and expand its global investment portfolio. The QIA is responsible for managing much of the proceeds raised from the sale of Qatar’s oil and natural gas. Estimates on the size of the fund over the past…

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