The Leader - November/December 2007 - (Page 10)

real estat e I N the NeWs Job Numbers Good News for leasing The U.S. Dept. of Labor reported 110,000 net new payroll jobs in September, and it revised the August total sharply higher to 89,000 from -4,000, reducing fears that a recession is imminent, reports Grubb & Ellis. Nevertheless, the housing slump and credit squeeze have exacted a toll on economic growth over the past few months. The September jobs report is good news for commercial real estate leasing activity, although it makes further cuts in the federal funds rate – which would provide more juice for real estate investors – less certain. economist says commercial construction continues to Grow Nationally Associated General Contractors of America chief economist Ken Simonson reports that commercial construction continues to thrive in many key areas of the country despite the ongoing housing market woes, as reported by the St. Louis Business Journal. He notes that recent jobs data from the U.S Bureau of Labor and Statistics (BLS) shows that employment in heavy construction trades has actually increased 1 percent over the last year. Looking ahead, he expects a slowdown in office, hotel and retail construction but increased development in the hospital, energy and power sectors. manhattan office rents hit record Cushman & Wakefield reports that average Manhattan office rents topped $62.91 per sq. ft. ($673.14 per sq. m.) in this year’s third quarter, a 37-percent increase from a year earlier. However, turmoil in the financial and credit sectors will likely slow that trend in the months to come, as more big banks make job cuts and require less space. Vacancies, meanwhile, increased from 5.3 percent in the April-through-June period to 5.7 percent. appeal Japanese real estate currently has for investors around the globe. Indeed, Japan’s real-estate market has seen a flurry of activity in recent months, as strong commercial property prices have driven overall prices up for the first time since the early 1990s. The bulk of the activity has been concentrated in three markets – Tokyo, Nagoya and Osaka – with foreign investors being especially active. Japan’s property market still has allure Goldman Sachs Group Inc. recently partnered with Aetos Capital LLC to bid as much as $1.1 billion for all of the shares of Simplex Investment Advisors Inc., a listed Tokyo-based property developer, according to The Wall Street Journal. The deal is further proof of the commercial real estate supply to Grow in baltics Thanks to positive service sector results and rising economic indicators, demand for commercial property has increased in the Baltic States of Europe, according to Colliers. The demand for modern buildings, though, is currently greater than the supply. This has caused some problems at the most rapidly growing firms who crave space with all of the up-to-date amenities. The region’s highest rent for Class-A office space is currently found in Tallinn, while the lowest average rents are being charged in Vilnius. Looking at retail, outlet centers are expected to carve a niche in the sector, especially in Lithuania. Leisure zones are also expected to increase in popularity alongside the traditional retail trade in new shopping centers. In the industrial sector, Riga is on pace to be the region’s leader by 2009, offering the most industrial sites, because of its great location and enticing port opportunities. 2 0 0 7 the le aDe r 10 November / December

Table of Contents Feed for the Digital Edition of The Leader - November/December 2007

The Leader - November/December 2007 Leadership Contents Message from the CEO Real Estate in the News Investing in India 110 to One Smaller Workspaces, Better Workspaces Innovating the Workplace Through Design Sustainability and Energy Efficiency Getting It Right Using Location Intelligence to Reinvent Franchises Philips International’s Ron Blanken CB Richard Ellis’ Karen Ellzey The State of Louisiana’s Mike Olivier Industry Tracker Economic Developer Directory Discovery Forum Findings Career Development Emerging Leader Economic Development in the News A Look Ahead Executive Development Spotlight

The Leader - November/December 2007

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