Commercial Property News - October 2008 - (Page 25)

INDUSTRY PULSE INTERNATIONAL and boosting potential for retail development and leasing. Consumer spending is already fueling the retail market. Growth in that sector divides into two tions to expand their presences there or set up shop for the first time. During the second quarter of this year, for instance, the Switzerland-based food conglomerate Nestle S.A. relocated 2,000 employees to 409,000 square feet in the former BKB Building in Sao Paulo’s Marginal Pinheiros submarket. Hines, the building’s owner, reported at the time that the lease’s size set a new record for the Sao Paulo office market. Firms are also finding room for growth outside that submarket, among them MetLife Inc., whose Brazilian affiliate recently expanded its reach in the Northeastern region by opening a new office in Recife, the nation’s fifthFor more on Brazil’s growth industries, visit www.cpnonline.com/search and enter key words “mainframe market” in quotation marks. EMBARKING ON COMPLEX REAL ESTATE TRANSACTIONS AND NEED EXPERT ADVICE? GET THE POWER OF DUFF & PHELPS. From valuation and due diligence to cost segregation and corporate real estate management consulting, the Real Estate practice of Duff & Phelps provides trusted analysis and insight on critical issues. With more than 1,200 employees working together across North America, Europe and Asia, we have the depth and breadth of industry and technical expertise to meet your needs. Get the strength of one of the world’s leading independent ﬁnancial advisory and investment banking ﬁrms. categories, explained Mordejai Goldenberg, executive vice president for Cushman & Wakefield Inc.’s South American affiliate. Some half-dozen players, WalMart Stores Inc. among them, are competing aggressively to expand their market share in the big-box and supermarket niche, which accounts for about 30 percent of the market. Meanwhile, other developers are focusing on open-air shopping centers and strip malls. For all that potential, retail opportunities in Brazil are still limited by economic growing pains. Much of the population still struggles to afford necessities. Underscoring the issue is a somewhat pessimistic demographic projection; as Linneman pointed out in the PricewaterhouseCoopers study, only 8 percent of the country’s consumers will earn an annual income of more than $15,000 by 2015. Another troubling trend is the easy availability of consumer credit. In 2007 alone, consumercredit purchases jumped 15 percent. Unless incomes and spending power can catch up to the rate of credit spending, a large number of consumers could get in over their heads, disrupting an otherwise robust expansion. Nevertheless, Brazil’s burgeoning economy is prompting a steady stream of global corpora- > > > > > > > Financial Reporting Valuation Tax Services Real Estate and Fixed Asset Services Investment Banking Corporate Finance Consulting Restructuring Advisory Services Dispute and Legal Management Consulting duffandphelps.com Merger and acquisition advisory services are provided by Duff & Phelps Securities, LLC. Duff & Phelps Securities, Ltd. is authorized and regulated by The Financial Services Authority. www.cpnonline.com • October 2008 • COMMERCIAL PROPERTY NEWS 25 http://www.cpnonline.com/search http://www.duffandphelps.com http://www.duffandphelps.com http://www.cpnonline.com

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CPN - October 2008 Contents Starting Line Industrial Data/Analysis Conferences Chicago Market Profile Finance International Title Insurance Brokerage Corporate Report

Commercial Property News - October 2008

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