CPN - January 2009 - (Page 26) MARKETPLACE Finance INTERNATIONALContinued from page 19 hai World Financial Center, ground broke on the even loftier 2,074-foot Shanghai Tower, which will encompass Class A office space,retail space, a luxury hotel and cultural venues. Expected to come online in 2014, it is being developed by the stateowned enterprises Shanghai Chengtou Corp., Shanghai Lujiazui Finance & Trade Zone Development Co. and Shanghai Construction Group. So, China’s future tallest building may cost more than $2.2 billion, but its shareholders are stateowned firms. “Construction financing? No problem. … (The tower) is being funded and developed by its home city,” a December Real Capital Analytics Inc. report stated. It also said, “Shanghai Tower’s developers are headed into the teeth of what could be a vicious downturn for this emerging market. But things might turn around by 2014, when the building is scheduled for completion.” And China’s economy may get a boost sooner, when Shanghai hosts the World Expo in 2010,pointed out GVA Kidder Mathews principal L. Leland Whitney. Projects under construction include roads and trains to make traveling to the venue easier. While China has made strides toward creating a more welcoming business environment, the country is still highly regulated and struggles with transparency issues. But Whitney takes a more optimistic approach.“There’s still a great deal of interest in moving offshore into China, both from software companies and companies that are looking to decrease their costs of manufacturing (in the United States),” he said.“Shanghai will have a more important impact on the financial markets as a financial center than it previously has.” t THE CHINA EFFECT Asset #2 resilient,adding that Shanghai prices and rents have held up.It remains to be seen whether this will continue. Industrial output grew 5.4 percent from November 2007 to November 2008, down from October’s yearover-year growth of 8.2 percent. The office sector has fared worse, as demand for Class A space has particularly fallen. Increased vacancies brought on by significant construction have exacerbated the situation. For example, the recent completions of the Shanghai World Financial Center,China’s tallest building, and the Mirae Asset Tower— both located in the Lujiazui financial district, an area of Shanghai that was farmland less than two years ago— have pushed Lujiazui’s office vacancy rate to a hefty 20 percent, according to Cushman & Wakefield Inc.’s third-quarter Shanghai office report. Capital constraints have placed some office projects on the back burner,but the Shanghai Tower is not one of them. Just three months after the opening of the 1,614-foot ShangNational Realty & Development Corp 21 Nielsen Research 11 Nortel Networks Corp. 16 Opus Group 9 Pacific Property Assets 7 University of Pennsylvania 10 Pepperdine University 22 Property & Portfolio Research Inc. 8 The PRS Group Inc. 11 Real Capital Analytics Inc..6, 8, 11, 17, 26 The Rezidor Hotel Group 6 Rilea Group 7 The Royal Bank of Scotland Group Plc ..16 Royal Institution of Chartered Surveyors 16 RREEF 6 Shanghai Chengtou Corp. 26 Shanghai Construction Group 26 Shanghai Lujiazui Finance & Trade Zone Development Co. 26 Sidley Austin L.L.P. 23 Standard & Poor’s 17 Sterling American Property Inc 7 Studley Inc 10 The Associated General Contractors of America 20 Transwestern 9 U.S. Realty Advisors L.L.C 17 Urban Land Institute 9 Vornado Realty Trust 6 Wal-Mart Stores Inc 22 Washington Mutual Inc 7 Winoker Realty Co. 17 Online news that’s real-time, REIT-specific, market-moving. 434.951.7797 • salesdept@snl.com • snl.com/real_estate Mortgage www.DoctorMortgage.com ANDREW LICHTENSTEIN (Lic REB) Inc. FAST, DIRECT PRIVATE LENDER! LOWEST RATES 3.85% + & HIGHEST LTV • WORLDWIDE FOR ADVERTISING OPPORTUNITIES, CONTACT Regional Sales Director: Jason J. Wafalosky, 484-624-5510, jason.wafalosky@nielsen.com Northeast & South Representative: Dan Burke, 732-229-2771, burkemediagroup@msn.com West & Midwest Representative: John Pellettieri, 818-368-5620, jbp7@earthlink.net Brokers Protected • Fax: 212-255-5277 800-242-9888 Web Services Directory Data Center www.cpnonline.com/datacenter Regions www.cpnonline.com/regions Business Specialties www.cpnonline.com/specialties Property Types www.cpnonline.com/propertytypes Finance www.cpnonline.com/finance Business Management www.cpnonline.com/businessmanagement Editorial Index 396 Alhambra L.L.C. 20 Agave Florida Investors L.L.C. 20 Alekson Development Group L.L.C. 6 Alhambra Investors L.L.C. 20 American Dream Development 20 Apartment Realty Advisors 7 ARCWheeler 10 Asian Coast Development Ltd. 6 Atlantic Development Group L.L.C 20 AvalonBay Communities Inc. 6 BlackRock Inc. 10 BlueStone Real Estate Capital 10 Boston Properties Inc. 6 The Boulder Group 18 Brandywine Realty Trust 10 Cassidy & Pinkard Colliers 6, 9 CB Richard Ellis Inc. 6, 9 Census and Statistics Department (Hong Kong) 19 Colliers International 19 Commonwealth Land Title Insurance Co. 22 CoreNet Global 15 Jose Cuervo Group 20 Cushman & Wakefield Inc..4, 6, 7, 16, 26 Fannie Mae 20 Federal Reserve Board 4 Ferguson Partners Asia Ltd 12 Ferguson Partners Europe Ltd. 12 Ferguson Partners Japan 12 Ferguson Partners Ltd. 12 Fidelity National Financial Inc 22 First American Title Insurance Co. 22 26 Fitch Ratings 4 FPL Advisory Group 4, 12 FPL Associates 12 Freddie Mac 20 FTSE NAREIT US Real Estate Index Series 14 Gatehouse Capital Corp 20 General Services Administration 9 Gibson Development 22 Guardian Management L.L.C 7 GVA Kidder Mathews 26 GVA Smith Mack 10 Hill International 10 HSBC 20 International Monetary Fund 11 Stan Johnson Co. 17 Jones Lang LaSalle Inc 6, 9, 11, 16, 17, 19, 20 JPMorgan Chase & Co 7 Kaye Scholer L.L.P. 23 KDC 20 LandAmerica Commercial Services 22 LandAmerica Financial Group Inc. 22 Lawyers Title Insurance Corp. 22 M&T Bank 21 Marcus & Millichap Real Estate Investment Services Inc. 6, 10 George Mason University 9 MGM MIRAGE 6 National Association of Realtors 9 National Bureau of Statistics of China 19 National Council of Real Estate Investment Fiduciaries 14 Advertiser Index COMPANY PAGE Buchanan Street Partners 16 Chicago Title Insurance Co 2 CoreNet Global New York City Chapter 27 First American Title Insurance Co 23 New York University 21 U.S. Realty Advisors L.L.C. 18 Yardi Systems Inc. back cover This index to advertiser page location is for readers’ convenience. 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