Prime Rents And Yields Stable Across Europe
London, 11th October 2011 – Amid the flow of significantly negative economic news and nervousness in the financial markets, prime commercial property rents and yields held firm in the third quarter, according to the latest figures released by CBRE.
Continuing the pattern that has emerged over recent quarters, prime rents saw little overall change across Europe in Q3 2011 in any sector. The CBRE EU-15 Prime Office Rent Index was unchanged in the third quarter, with the vast majority of constituent locations seeing no change in the prime rent level. Industrial rents were similarly flat, while high street retail rents continue to see the strongest growth albeit up by only 0.7% this quarter.
Fashion Savvy Consumers Embrace Online Shopping
London, 13 October, 2011 - Clothing and footwear shopping is taking-off in Europe as the next most popular online retail sector, as consumers become more confident using the internet to make purchases. This follows on from the established success of online sales for books, music and computer games, according to a ground-breaking new study by CBRE.
At a time when there is an unprecedented level of consumer access to the internet across Europe, CBRE has commissioned the most comprehensive and far-reaching study of its kind to explore:
London Is Top Target In Europe For Global Real Estate Investors
London/Munich, 4 October 2011 – London is the primary target in Europe for global capital flows into commercial real estate, with almost five times as much investment from non-European buyers as its nearest rival, according to the latest research from CBRE.
During 2010 and the first half of 2011 non-European investors from around the world invested €24 billion (£21bn) into European commercial real estate. London was the predominant destination for this investment with a market share of 39%, almost five times as much Paris (8%) in second position. The next three cities with the largest amounts of non-European property investment were Berlin, Moscow and Frankfurt, each accounting for approximately 3% of the total.
CB RICHARD ELLIS Group, Inc. Acquires Dutch Shopping Centre Management Specialist, SCM Europe
London, 30 September 2011 – CB Richard Ellis Group, Inc. (CBRE) today announced the acquisition of SCM Europe BV ("SCM"), a leading Dutch shopping centre management company, further strengthening its leadership in the European retail real estate sector.
SCM provides property management, development consultancy and leasing services to a broad range of clients including Syntrus Achmea and ING Real Estate Investment Management. The company manages 59 retail assets covering 6.7 million sq ft of space. Its portfolio includes leading Dutch high-street shopping centres such as the Rotterdam Lijnbaan and the Eindhoven Heuvel Gallery, as well as the renowned Megastores in The Hague and the Megastores of Rotterdam Alexandrium.
East-West Split In European Office Markets As Rents Stall In Q2
London, 2 September 2011 – Renewed caution from occupiers had led to reduced activity across Europe's main office markets, with the notable exception of Moscow, according to the latest EMEA Offices report from CB Richard Ellis (CBRE).
The report finds that uncertainty generated by the sovereign debt crisis and broader economic climate is affecting occupier behaviour, with many choosing to roll over existing leases or take short-term expansion space as opposed to relocating, at least until clearer signs of recovery are evident. As a result take up across European office markets for the first half of the year is down 6% compared to the same period last year, and 12% compared with the second half of 2010.
Maximum Loan Size Doubles To €200m In Germany
London, 23 August 2011 – The maximum loan size in Germany has doubled to €200m in a single quarter, CB Richard Ellis (CBRE) has revealed in its Q2 2011 European Capital Markets report. Competition between lenders to finance prime transactions in this core market has allowed Germany to defy the trend of tightening lending conditions spreading across Europe.
In stark contrast, lending in Spain remains severely constricted and single lenders are only prepared to finance relatively small transactions. The downgrading of the country's sovereign debt has increased the cost of capital to Spanish banks, resulting in high margins.
European Capital Values Static
London, 22 August 2011 – The second quarter of 2011 (Q2) marked a continued period of general stability in values across the European commercial property market. While positive (+0.1%), the rate of growth was much slower than seen in the previous two quarters (at +0.4%, and +1.2% respectively) according to the latest European Valuation Monitor (EVM) published by CB Richard Ellis.
Over recent quarters the retail sector has seen the strongest performance, and this trend continued – retail property was the only sector to see positive value change (+0.8%) in Q2. While year on year change is still positive for the office sector (+2.0%), values in the industrial sector are now falling year on year (-0.9%).
Sovereign Debt, Global Market Volatility And Commercial Real Estate
We have seen extreme volatility in the equity and capital markets in recent weeks, as economic news has been mixed and investors have perceived increased downside risks to global growth. This was accentuated by Standard & Poor's' downgrading of U.S. government sovereign debt from AAA to AA+. The downgrade itself served more as a catalyst, unleashing negative sentiment, which has built up over recent months, rather than the fundamental cause.
Developers Return To Cee Office Markets
The Prague, 4 August 2011 – Central & Eastern Europe's (CEE) office stock grew modestly during the first half (H1) of 2011, but development completions remain at the lowest level on record, according to the latest data from CB Richard Ellis (CBRE).
Despite a recent increase in development starts across CEE, relatively low levels of completions are expected over the next 12-18 months. Weak occupational fundamentals coupled with continued challenges in securing financing mean that developers have been reluctant to launch new projects.
Retail Property Investment Drawn To Europe's Faster Growing Economies
London, 9 August 2011 – Retail property investment activity is increasingly following Europe's stronger and faster performing economies such as the Nordics, Germany, Poland, and Russia, according to the latest data from leading global real estate adviser CB Richard Ellis (CBRE).
The agreement will cover a 6 million sq ft (560,000 sq m) portfolio encompassing 520 offices in nine countries - Austria, Germany, Ireland, Italy, Portugal, Slovakia, Spain, Switzerland and the United Kingdom. The contract reflects the continued expansion of CBRE's Global Corporate Services business, which added 16 new corporate accounts and expanded 16 existing corporate relationships during the first half of 2008.
CB Richard Ellis selected by Zurich as preferred European Real Estate advisor
London, August 5, 2008 – CB Richard Ellis Group, Inc. (NYSE - CBG) today announced that it has been selected by Zurich Financial Services Group to serve as its preferred provider of commercial real estate services in Europe including transaction management and strategic consulting.
Retail property investment in Europe reached €20.1 billion in the first half of 2011, accounting for 37% of commercial real estate investment, well above the long-term average of 28%. The retail sector has attracted a wide range of buyer types, including many retail specialists such as listed property companies, as well as more general institutional investors. Strong demand from non-specialist investors, especially those from the Middle and Far East, has also provided a significant boost to retail investment activity.
City selects CB Richard Ellis as preferred EMEA Real Estate advisor
21st July 2008 – Citi today announced that its has selected CB Richard Ellis to act as one of three preferred real estate services advisors for its transaction management services across Europe, the Middle East and Africa (EMEA).
The joint mandate for Citi's real estate network covers over 1,640 offices, call centers and retail outlets in 53 countries across EMEA totaling over 13.2M sq ft.
European Office Supply Restricted Until At Least 2013
London, 15 July, 2011 – New office completions in major European markets could fall by over 30% in 2011 compared with 2010 and could decline further in 2012 as the low level of construction starts during the economic crisis feeds through into reduced levels of new office space, according to a new report by CB Richard Ellis (CBRE).
The credit crunch and ensuing economic crisis in 2008 had a major impact on office development activity and reshaped development pipelines across Europe. The shortage of available debt and uncertain economic environment prompted many developers to downscale or delay planned projects. As a result, new office completions in major European markets will experience a sharp contraction in the next two years and will remain subdued throughout 2013.
Retailer Expansion Held Back In Europe By Lack Of New Shopping Centre Development
London, 11 July, 2011 – A shortage of new shopping centres being built in Europe restricted the expansion plans of retailers in 2010, but an increase in the amount of space available in emerging markets next year is expected to put retailer growth back on track, according to new research by leading global property adviser CB Richard Ellis (CBRE).
CBRE's Shopping Centre Stock in Europe research found that 1.9 million square metres of shopping centre space was completed in 2010 - a fall of 36% from the previous year. The 2009 total was also 30% lower than 2008, which represented the peak in shopping centre development. However, if all of the new shopping centres due in 2011 are completed on time, there will be an increase of 53% in new space available to retailers next year, totalling 2.9 million sq m.
Cb Richard Ellis Achieves Carbon Neutrality Goal
6 July 2011 – CB Richard Ellis Group, Inc. (CBRE) announced today that it has achieved carbon neutrality for its 2010 global operations. In 2007, CB Richard Ellis adopted a companywide Environmental Stewardship policy, which included the goal of becoming carbon neutral. CB Richard Ellis is the first global commercial real estate services firm to achieve carbon neutrality.
The company achieved neutrality by implementing carbon mitigation programs, such as green leasing standards and sustainable operation protocols, and then offsetting the remainder by investing in carbon mitigation projects, such as conservation-based forest initiatives, landfill methane destruction and sustainability projects in emerging economies. For 2010, the company offset more than 50,000 metric tons of emissions.
Property Investment Activity In Cee Triples On The Same Period Last Year
Prague, 15 June 2011 – Real estate investment turnover in Central and Eastern Europe (CEE) reached €4.4 billion in the first five months of 2011, according to new research by CB Richard Ellis (CBRE). This figure indicates an increase of 180% of the year-to-date investment volume compared to the same period in 2010. In a growing number of CEE markets liquidity has started to increase supported by growth in both the number as well as the size of the transactions.
Despite investment activity spreading into a wider range of CEE markets, investor focus has remained on Poland, the Czech Republic and Russia. The Czech Republic saw the most significant increase in investment as a result of the closing of some large portfolio transactions, with a continued focus on income security and prime properties. Consequently, an increase in liquidity in the secondary segment has not become visible thus far.
CB Richard Ellis named to the FORTUNE 500 for 4th straight year
London, 11 May 2011 – CB Richard Ellis Group, Inc. has been named to the FORTUNE 500 list of the largest U.S.-based companies for the fourth straight year. CB Richard Ellis is the only commercial real estate services firm ever to be included in the FORTUNE 500.
"Our ongoing membership in the FORTUNE 500 sets us apart from other commercial real estate service providers," said Mike Strong, CEO and Chairman of CB Richard Ellis EMEA. "We have attained a position of industry leadership in EMEA and across the world because clients have confidence that our platform and our people can deliver the best solutions to meet their strategic business needs."
The FORTUNE 500 ranks U.S.-based companies by total revenue. CB Richard Ellis was ranked at #440 on the list, up nearly 60 places from the prior year.
In 2010, CB Richard Ellis arranged sales and leasing transactions with total value of $128.1 billion and managed commercial properties and corporate facilities totaling more than 2.9 billion sq. ft. (includes properties managed by affiliate companies).
Earlier this year, CB Richard Ellis led National Real Estate Investor's Top Brokerage list for the eighth straight year. The Company is also the only commercial real estate services firm included on the 2011 Forbes Global 2000 list, which identifies the world's most powerful publicly held companies based on a combination of revenue, profits, total assets and market value.
IAOP ranks CB Richard Ellis #6 among all outsourcing firms
London, 10 May 2011 – CB Richard Ellis Group, Inc. (NYSE:CBG) today announced that the Company has been recognised as the sixth ranked provider of outsourcing services across all industries, according to the annual Global Outsourcing 100 released by the International Association of Outsourcing Professionals (IAOP). This is the highest ranking for any commercial real estate services firm on the 2011 list, which recognises the world's most prestigious outsourcing service providers.
This recognition marks the second time in IAOP history that CB Richard Ellis has been included in the top 10, and its highest position to date. CB Richard Ellis is the only commercial real estate services firm ever to make the top 10. The list ranks the top outsourcing service providers across all industries. The full list is here.
"To be recognised as one of the world's top outsourcing firms – across all professional services – underscores the leadership position we have achieved through a combination of exceptional talent and a best-in-class services platform," said Brett White, Chief Executive Officer of CB Richard Ellis.
The Global Outsourcing 100 rankings are determined by an independent panel of judges based on four characteristics: size and growth rate, customer references, demonstrated competencies, and management capabilities. The IAOP panel cited CBRE's management capabilities and customer references as being particularly strong – the company was ranked 8 out of a possible 8 in both these categories.
"What is remarkable about CBRE's growth within outsourcing over the years is its investment in – and unwavering commitment to – creating and constantly refining an integrated, value-driven, and client-centric approach," said Michael Corbett, Chairman of IAOP's Board of Directors. "Their ranking, client testimonials, management systems, and executive leadership all clearly reflect this commitment."
CB Richard Ellis offers an unrivalled suite of commercial real estate services on a global basis. The company was responsible for more than $128.1 billion of property sales and lease transactions in 2010, and managed more than 2.9 billion sq. ft. (including properties managed by affiliates) of commercial properties and corporate facilities as of December 31, 2010. The Company signed a record 44 long-term outsourcing contracts during the first quarter of 2011.
Global Offices Set For Rental Growth And Increased Capital Values
London, 25 May 2011 – Rises in both global office rent and capital value indices point to continued recovery for the worldwide office market, according to CB Richard Ellis (CBRE). Having expanded for the second quarter in a row, the CBRE Global Office Rent Index rose 4.3% year-on-year in the first quarter of 2011 (Q1) following a rise of 2.4% in Q4 2010. The CBRE Global Office Capital Value Index expanded 12% year-on-year during Q1 2011, and has been in recovery mode for a year now.
The Europe, Middle East and Africa (EMEA) region showed positive rental increases at 2.5%, having already experienced a more moderate descent from its peak.
Cbre Appointed To Manage British Airways' 8.5 Million Sq Ft Global Estate
London, 09 May 2011 – Global airline British Airways, one of the world's leading premium airlines, has appointed CB Richard Ellis (CBRE) to manage its 8.5 million sq ft global property portfolio, including more than 7 million sq ft in the United Kingdom.
Mike Gedye, Senior Director of Corporate Advisory Services, CBRE, said: "This contract expands upon our well-established relationship with British Airways, allowing us to provide creative global property solutions and to make the most of strong opportunity in the market for British Airways' overseas portfolio. British Airways' innovative approach to the use of their property will set a leading example for the aviation industry and make use of our unrivalled experience in the sector."
Little Movement In Prime European Rents And Yields In First Quarter
London, 08 April 2011 – The first quarter of 2011 was one of general stability in values across the European commercial property market, with prime rents and yields seeing little movement, according to the latest figures released by CB Richard Ellis (CBRE).
While the direction of prime yield movement is still downward, the pace of change is slow, with falls of less than ten basis points in each of the main commercial sectors, according to CBRE's latest EMEA Rents and Yields Indices. Prime rents edged up marginally in all sectors in Q1, most strongly in the retail market which saw a 1.4% increase. Year-on-year rental growth remains strongest in the office sector, with a rise of 2.3%.
CB Richard Ellis named ‘World’s Best’ Consultancy at International Property Awards
CB Richard Ellis Group, Inc. (CBRE) has been named the “Best International Property Consultancy” of 2010 at the International Property Awards, announced in London on 27 November 2010. The event, held in association with Bloomberg Television and the New York Times, is one of the foremost property award competitions in the world, having existed for more than 15 years.
CBRE was selected for this “world’s best” award over other top-scoring regional winners from Europe, Africa, Asia Pacific, Arabia and the Americas. CBRE was also the winner of the “Best Commercial Property Consultancy” award for London, qualifying the company for consideration in the overall international award. The International Property Awards were determined by an independent panel of judges.
Brett White, Chief Executive Officer of CB Richard Ellis, said: “Winning this highly coveted award is a strong endorsement of our people and platform as well as our ability to develop innovative solutions that enable our clients to succeed throughout market cycles.”
Mike Strong, Chairman & CEO of CBRE’s EMEA operations, added: “Today more than ever, large multinationals choose property advisors who not only have a proven international track record but can also think innovatively and differently. Our constant objective is to continue to evolve and improve the service we deliver to clients – winning these awards gives us additional confidence that we’re fulfilling that critical aim.”
This year’s judging panel included: Google UK’s industry head property markets; group chief executive of the National Federation of Property Professionals; president elect of International Real Estate Federation FIABCI; International Consortium of Real Estate Agents Association (ICREA); chairman of the Australia Institute of Architects; editor-in-chief of International Homes Luxury Collection magazine; and CEO of the German Real Estate Association.
London (West End) remains world’s most expensive office market;Hong Kong (cbd) second; Tokyo Inner Central third
London’s West End continues to be the world’s most expensive office market, according to CB Richard Ellis Group, Inc. (CBRE) Global Research and Consulting’s semi-annual Global Office Rents survey. Hong Kong’s Central Business District (CBD) continued in second place and also recorded the fastest year-over-year occupancy cost rise with a 34.2% increase. Tokyo’s Inner Central remained the third most expensive market for office space. Mumbai held its fourth place position on the list while Moscow remains fifth in the CBRE rankings, which track occupancy costs for prime office space in 175 cities around the globe.
CBRE reports first positive capital returns in Continental European real estate market this cycle
CBRE’s European Valuation Monitor sees values stabilising further in Q2 2010
Continental European capital values recorded their first positive change of this cycle in the second quarter (Q2) of 2010, according to CB Richard Ellis’ (CBRE) latest European Valuation Monitor. After nine consecutive quarters of decline, growth of 0.3 per cent was recorded, with the Nordics and France leading the monitor higher (by recording 2.3 per cent and 1.4 per cent quarterly capital growth respectively). Evidence of stabilisation was also apparent in the other European regions, where the pace of capital value decline moderated further following Q1 2010 improvements.
Whilst the UK again posted the strongest quarterly growth in Europe of 2.3 per cent in Q2, this was its weakest performance since Q3 2009 (2.0 per cent), as reflected in CBRE’s UK Monthly Index for July. Including the UK in the pan-European figures, capital growth was 0.7 per cent across Europe in Q2.
The retail sector has shown the best performance each quarter over the past year for both pan-European and ex-UK capital values and has outperformed the industrial and offices sectors. The European office sector (excluding the UK) saw its first positive result of the cycle in Q2, although it still lags the other sectors in terms of year-on-year performance.
CBRE's Q2 EMEA Rents and Yields Indices showed small reductions in prime yields across all sectors, with office rents edging up in an otherwise broadly stable European real estate market. With an uncertain economic outlook and limited prospects for rental growth in the short term, investors have focused on the core western markets of France and Germany along with the Nordic region, particularly Sweden.
Richard Holberton, Director, EMEA Research, CB Richard Ellis, commented: “The first positive value movement in the continental European real estate market reflects the growing trend towards prime yield stabilisation, and in some cases falls, across all sectors. In overall terms, the relatively modest recovery in values is consistent with what we would expect given the slow economic recovery and the concentration of investor interest at the prime end of the market.”
The CBRE European Valuation Monitor showed:
• All Property pan-Europe capital growth was 0.7% in Q2, with annual growth also 0.7%.
• All Property ex-UK Europe capital growth was positive for the first time this cycle: 0.3% in Q2, although values were still 3.1% lower than a year ago.
• The strongest performing market region over the quarter was the UK, which recorded capital growth of 2.3%. The Nordic region led the non-UK markets for the quarter with 2.1% growth, followed by France with 1.4%.
• Retail was the best performing sector over both the quarter and year, with 1.0% and 2.0% capital growth respectively on a pan-Europe basis.
The CBRE European Valuation Monitor is based on quarterly fund valuations carried out by CBRE and designed to enhance transparency by providing a general indication of patterns of value change in the European property market. This is the third report in the series since it was launched in Q4 2009.
Asia Pacific continues to lead global office rent rebound
EMEA region follows closely, with rents turning up
More than half of the office rental markets in Asia Pacific either stabilized or moved into the growth phase during the second quarter (Q2) of 2010, demonstrating that the region continues to lead the global real estate recovery, according to CB Richard Ellis’ (CBRE) latest quarterly Global Office Rental Cycle report.
Globally, cities in all regions generally moved forward in the global rental cycle during the quarter, with office demand remaining stable or improving in most locations. The financial and corporate sectors have boosted demand for office space in Asia and Europe, supported by growth in private demand and employment stabilization in mature economies during the past quarter.
CBRE: Prime yields edge downwards in EMEA property markets in Q3 2010
Latest data shows contrasting upward yield shift in UK regional office market
Yields from prime commercial real estate in Europe, Middle East and Africa (EMEA) continued to edge downwards in the third quarter (Q3) of 2010, falling by up to 11 basis points across the office, retail and industrial sectors, representing a slightly larger fall than in Q2 2010, according to CB Richard Ellis’ latest EMEA Rents and Yields Indices. There was relatively little change in prime rents across the key European markets during the quarter.
Richard Holberton, Director of EMEA Research, CBRE, said: “This quarter’s changes reinforce the offset in the timings of the rental and capital markets cycles. While prime rents in many markets have now stabilised, there is an absence of widespread upward momentum. This is one of the factors now tempering the downward movement of yields. Perhaps more importantly, following significant repricing in the second half of last year, many investors paused over the summer period to assess the market in light of the possible impact of government austerity measures.”
CBRE instructed on Europe’s largest straw bale community development
The Building Consultancy team at CB Richard Ellis (CBRE) in Leeds has been instructed to project manage the construction of an innovative £4M eco-friendly Enterprise Centre in Bradford which will be the largest straw bale community development in Europe.
Newlands Community Association initially approached CBRE to advise on repair work to its existing facility, located within a 1950’s school building. The expert team advised that the most cost-effective solution would be to locate from the existing redundant premises to a new facility and subsequently the Association was awarded planning permission to develop a new community centre on a 3.5 acre brownfield site in the Eccleshill area of Bradford.
Funding for the scheme comprises £1.019 from the European Regional Development Fund, £1M from the Communitybuilders fund and £990,000 from Bradford Council’s Government-funded Local Enterprise Growth Initiative in addition to a £1M mortgage from the Charity Bank.
A full design and project team is currently being appointed by CBRE with work scheduled to start on site in January 2011 developing a 2 storey 15,000sq ft Enterprise Centre and an additional 15,370 sq ft building incorporating 14 units of managed workspace with flexible leases. Both buildings, which will be constructed from bales of straw, are scheduled to open towards the end of next year.
CBRE has already assisted the Association with developing plans for the new centre in terms of costings, architecture, sustainable construction and in securing funding and will now manage the entire progress from start to completion.
Nick Twigg, Associate Director of Building Consultancy at CBRE, said; “The Enterprise Centre is an incredibly exciting project and is intended to set the benchmark for sustainable community development in Europe. In addition to the straw bale construction, key features of the BREEAM ‘Excellent’ rated development will be ground source heat pumps, a canopy constructed from photovoltaic cells, recycled carpet floor coverings and gluelam beams to name a few. The project represents a major investment into an area of Bradford which is prime for regeneration and the result will be a fantastic new centre for the community to benefit from and also an exemplar ‘green’ development.”
Tony Holdich, Business Manager for Newlands Community Association, continues; “When we were advised by CBRE that our existing facility was unfit for use we wanted to really push the boundaries of design and build to create a centre of Excellence.
“Bradford is a truly transformational city and it is projects such as this that will ensure it achieves its long-term regeneration goals. We are delighted to have secured the funding to facilitate this groundbreaking development and are looking forward to seeing work progress on the new facility.”
Global investor demand and rents recovering for industrial property
Industrial markets across the globe are now in recovery mode, albeit at very different stages, with Asia leading the rental recovery according to a new MarketView report from CB Richard Ellis Group, Inc. (CBRE). All regions witnessed increases in investment spend in the first half of 2010, with appetite strongest across Europe, the Middle East and Africa (EMEA), where industrial sales increased by 90% on 2009 levels, with this pace set to continue into 2011.
CBRE’s first global analysis of both the occupational and investor aspects of the industrial logistics sector, shows that Tokyo has emerged as the most expensive location in the world for distribution/logistics centres, followed by London and Sao Paulo in Brazil.
Gallery Apartments welcomes its first tenants CB Richard Ellis partnership sales agency
Despite almost complete standstill in construction activities in residential property market during 2009, lack of demand and postponement of many announced large projects by foreign developers, in the first place, yearend brings a modern residential-commercial complex in the heart of Belgrade.
CB Richard Ellis Serbia, partnership sales agency of the project Gallery Apartments, believes that in spite of the initial shock the property market has sustained due to a global financial crisis, the project such as Gallery Apartments represents a perfect example of success that will certainly positively influence buyers’ perception of quality and trust.
Kragujevac ever more interesting foreign investment spot
Once strong regional industrial center, today Kragujevac apart from Belgrade and Novi Sad attracts significant amount of foreign capital, as the town with palpable long-term investment potential.
Namely, after Fiat bought the biggest domestic car manufacturer Zastava in Kragujevac, and Israeli investor Plaza has announced the construction of large modern shopping center, another renowned Greek investor Global Finance has chosen Kragujevac for the construction of residential-commercial complex, after a number of investment transactions in South Eastern Europe.
At a very attractive location, in immediate vicinity of future shopping center and Fiat’s factory, Global Finance will build residential-commercial of 25,000 sq m of GBA. The construction commencement is planned for Spring 2010, so the first buyers will be able to enjoy their new homes next year.
The project shall promote European concept of living, which lucky citizens of Kragujevac shall have the opportunity to buy at highly competitive prices due to challenging market conditions. The complex shall comprise modern residential units along with the commercial ground floor, which will allow for an ideal combination of work and living cocept.
All apartments shall feature premium quality finishes, high-standard construction materials, first class wall and floor coverings, while future buyers will enjoy the choice of kitchen designs and bathroom equipment up to their taste. These modern apartment layouts will imply highly functional space organization, various apartment sizes and layouts, as well as tailor-made structural solutions according to buyers’ requests.
The fact that this venture represents capital investment and epitome of quality and safety is further enhanced by the choice of CB Richard Ellis as exclusive sales agency, a leading global reall estate consultancy, which will lead the whole process of sales, helping future buyers choose the right apartment layout to suit their needs at competitive price as well as giving them advice on credit options.
CB Richard Ellis Exclusive Sales Agent of Residential and Commercial Complex Kalemegdan Park
CB Richard Ellis, Serbia has been chosen as exclusive sales agent of currently the most exclusive residential and commercial complex in Belgrade – Kalemegdan Park.
MPC Properties, a renowned local developer has recognized CB Richard Ellis as reliable strategic partner, whose global ‘know how’ shall add further value to both the development consultancy phase as well as to the overall sales process of this unique project in Belgrade Property Market.
The completion of the project is envisaged for the first half of 2011, when Belgrade will get its Manhattan condominium in the true sense of the word.
Project Description
Located at the very heart of Old Belgrade, this elite residential complex is tucked away in a green oasis of the most beautiful and the oldest Belgrade park – Kalemegdan. Embraced by authentic Dorcol streets Tadeusa Koscuska and Cara Urosa, the future complex shall be an epitome of luxury in every sense. Architectural design of the project will perfectly match the surroundings and the architectural concept of the area. The future complex shall hold app. 12.000 sq m of GBA, covering six floors, with a total of 28 to 34 units of 80 to 400 sq m size. Apart from 24/7 video surveillance and multi-level underground parking space, the future tenants shall enjoy mini parks, spa & fitness center, wine cellar, whereas the ground floor shall host a bar along with the reception as a warm welcome to the visitors and clients of the complex. Additionally, the complex shall also have a restaurant and a number of stores, that would add further living value to this luxurious urban zone of tranquility and pleasure.
The complex shall comprise two blocks of apartments with separate entrances and two-way orientation to two most popular Dorcol streets. Future buyers of the apartments in this prestigious oasis of elegance, peacefulness and comfort will have the opportunity to choose the finishing works, enjoy some flexibility when it comes to the organization of rooms in their future apartments or possibly space reorganization and integration of two residential units into one in some cases.
CB Richard Ellis exclusive leasing agency of new office building in New Belgrade
Belgrade office market will soon be richer for another modern office building, as we find out from CB Richard Ellis, the exclusive leasing agent of the project.
Business-commercial complex West End is located in business district of New Belgrade, in Block 60, in Tosin bunar area, in close proximity of E70 Highway and central New Belgrade boulevards, at mere 15-minute drive from the airport.
West End business complex will feature two independent five-storey office buildings of authentic architectural style, totaling 12,500 sq m of GBA, with underground parking space of 1,500 sq m and secured open parking lot of 88 parking spaces capacity. The completion of the construction of the first phase is planned for end November, whereas the whole complex shall be finished in February 2010.
The tenants who decide on movement or expansion of their business into this modern business complex shall enjoy maximum flexibility of office space, since every floor can be subdivided into separate units in accordance with the requirements of the tenants and standards of their various businesses. What makes standards of this building different in the market is the fact that standard fit out presumes suspended ceilings and raised antistatic floor, which significantly facilitates further fit out requirements according to tenants’ wishes.
The blend of unique colourful design and glazed façade represent unusual contrast of modern design and corporate image of modern business center. This is further enriched by rounded frontage lines with retail space on the ground floor, envisaged for service businesses which will make everyday corporate environment of the tenants more enjoyable.
CB Richard Ellis Exclusive Leasing Agent of Hyperium Business Center in Macedonia
CB Richard Ellis, Serbia has become exclusive leasing agent of new A Class Office Building in Skopje, Macedonia.
This modern business center represents EUR 17 m worth investment project of the investor Hypo Alpe Adria Leasing.
“Hyperium” Business Center, characterized by unique and very recognizable architectural design, shall comprise two five-floor office buildings holding approximately 13.000 sq m of GBA, including two-level underground parking space of 200 parking spaces capacity.
The project shall be finished by the end of the year, while interested companies may even now enter the lease agreements negotiations.
At the moment Hyperium represents one of the biggest office buildings on Macedonian market, whereas such an investment under current market conditions reflects the current demand on the market for new concept of office building that would offer fully functional and immediately operational office space to prospective tenants, with no need for any additional investment.
Future design, layout and amenities
The combination of attractively designed balconies and curtain wall façade has provided a sophisticated blend of modern design and functionality, while stylish stone walls in central part represent an excellent structural connection between the two office buildings, giving a special touch to the overall architectural design. This is further enhanced by passarelles which via internal platform provide a link between the two complex segments.
The project offers highly enjoyable corporate setting that provides its tenants with a true sense of business community, which is in modern business world not considered as luxury but a necessity. The business center is designed as plug & work office space, which perfectly corresponds to the requirements of modern business standards, greatly facilitating the very process of business expansion or movement of companies to this new office building.
The complex shall have all the amenities and facilities necessary for everyday business, including fully equipped up-to-date congress center, which the tenants shall have the possibility to rent for seminars, conferences, workshops or presentations. 24/7 Video surveillance, four-pipe HVAC, restaurant with catering services, visitors’ open parking lot, are just some of the amenities that will definitely make tenants’ everyday business setting much more comfortable and safer. What makes this project positively different and further adds to its competitiveness in the market is also Hypo Pavilion, a wholly separate unit within the complex that will be used as exhibition space
Lexmark Selects CB Richard Ellis as EMEA Facilities Management Property Advisor
CB Richard Ellis Group, Inc. (NYSE: CBG) today announced that it has been selected by Lexmark International Inc. (NYSE: LXK), a global developer, manufacturer and supplier of printing and imaging solutions, to provide facilities management services across their 500,000 sq ft EMEA sales and marketing office portfolio.
This latest appointment reflects the ongoing success of
CBRE's partnership with Lexmark which commenced in 2005
with a three-year contract to provide strategic
portfolio and transaction management services across the
EMEA region. In 2006 CBRE was further appointed to
provide facilities management services for Lexmark's
corporate headquarters in Lexington, Kentucky. And 2008
saw the reappointment of the transaction management
services contract in EMEA, which was also notably
extended to include the US and Asia.
European Industrial Investment Activity set to Rise
Investment turnover in Europe’s industrial and logistics real estate sector totaled nearly €2.5 billion in the first half of 2009, maintaining its 10% share of the wider investment market, and with the potential to increase, according to CB Richard Ellis’ latest EMEA Industrial & Logistics MarketView report.
Richard Holberton, Director of EMEA Research, CBRE, said: “The defensive characteristic of a high-income return, and hence less dependence on income growth, is one factor that enhances attraction to investors in weak economic conditions. Assuming that investment levels are maintained in the second half of 2009, there is scope for absolute levels of investment in the industrial sector to rise in 2010.”
Major Western European Markets drive quarterly increase in European Property Investment Activity in Q3 2009
Significant increases in real estate investment turnover in the UK, Germany and Spain in the third quarter (Q3 2009) propelled an upturn in the European commercial real estate investment market, according to the latest data from CB Richard Ellis Group, Inc. European investment activity in Q3 2009 totaled €17.3 billion, a 34% increase on Q2 2009 and the highest quarterly result so far this year. Despite the quarterly increase, in year-on-year terms the Q3 2009 total compares with the €30.0 billion investment turnover recorded in Q3 2008.
Cisco Systems Awards CB Richard Ellis Group, Inc. Global Project Management Services
CB Richard Ellis Group, Inc. (NYSE:CBG) today announced it has it has been selected by worldwide networking leader Cisco Systems to be its preferred provider of project management services globally. These services will encompass capital construction projects within Cisco’s 506 locations spanning 87 countries and totaling 23.6 million square feet.
CBRE was selected by Cisco after a competitive evaluation process. Under a multi-year agreement, CBRE will manage global coordination and delivery of all projects. Potential project types range from fit-out of small field offices to large-scale campus development to complex data center construction. Locations supported range from Cisco’s San Jose headquarters campus to outposts in diverse emerging markets.
Investor interest to spread from prime into secondary property in key European Markets
CB Richard Ellis’ European investment market briefing at Expo Real in Munich today revealed that investor sentiment is improving across much of Western Europe, mirroring the better economic performance that has been seen and the strong run in Europe’s stock markets since March. Many REITs are now trading at a premium to NAV, indicating an expectation of improving capital values.
Further evidence of European yields stabilising in third quarter
Prime yields have shown further signs of stabilisation across Europe’s real estate markets, and are trending downwards in several locations, according to the latest third quarter data from CB Richard Ellis. Initial estimates show the CBRE EU-15 all-property average prime yield index remaining stable at 6.13% in Q3, reflecting stronger investor sentiment towards core prime assets in many parts of the market. This series had risen by 130 basis points (bps) between mid-2007 and the first quarter of this year, since when it has remained level.
Goef Investment Activity accelerating with €12 billion potential spending power
Liquidity levels across the German Open-ended Fund (GOEF) sector have been on the increase compared to the recent past, according to new analysis by CB Richard Ellis. The GOEF sector as a whole currently holds around €18 billion in cash or immediately liquid assets, which translates into up to €7.5 billion immediate spending power on real estate. This increases to as much as €12 billion over the next two years if inflows continue as expected.
Yet not all of the funds are in equally strong positions. Current liquidity levels are especially high for three fund managers in particular – Union Investment, DEKA (including WESTINVEST) and Commerz Real – who between them have over €6 billion immediate spending power.
CB Richard Ellis reports continued reduction in take-up across the European Data Centre Market
The European Data Centre market continued to see a reduction in take-up in the second quarter of 2009, according to the latest quarterly report by CB Richard Ellis (CBRE), European Data Centres, which has monitored the worldwide Carrier Neutral Hotel supply since 1999.
There are signs, however, that corporate budgets will be increased in 2010, which should fuel take-up in the Retail and Wholesale Co-location markets in particular.
Overall take-up in Quarter 2 2009 was only 6,440 sq m across the five Tier 1 markets. This brings the total take-up for the first half of 2009 to 17,460 sq m which represents the lowest performing half year since 2004, compared with the 64,140 sq m for the first half of 2008.
New Global MarketView Analyses
Back from the Brink… But What Next?, a new Global MarketView report issued by CB Richard Ellis (CBRE), reports some stabilisation and recovery in the world’s commercial real estate markets at the mid-point of 2009.
The quarterly global report, which scrutinises economic and real estate trends across the world’s three key regions, looks at the obvious indicators of weak market conditions but also identifies some positive developments, including initial signs of recovery in some regions:
European Commercial-Property Deals Plunged in Value
CB Richard Ellis Group, Inc. announced today that, as widely expected, European investment activity continued to slow in Q1 2008 as the credit squeeze impacted transaction volumes. European investment turnover totaled €37 billion in Q1 2008, compared with €58 billion in the final quarter of last year.
The
decline in activity, which became evident in the last
quarter of 2007, was more pronounced during the first
quarter of 2008. Lower levels of activity were reported
across most of continental Europe. In the UK, however,
where the slowdown in transactions emerged earliest,
turnover remained at a similar level as Q4 2007 at
approximately €10 billion. The UK has seen a sharper
correction in pricing than other markets, and higher
yields have already started to attract the interest of
equity investors.
Outside the UK, the continent’s two largest markets -
Germany and France – saw lower volumes than in the
previous quarter or in the equivalent period of last
year. After a record final quarter of 2007, trading in
Germany has slowed, especially for large assets and
portfolio deals. In France, where the majority of
trading tends to be in Ile-de-France offices, the
reduced number of deals reflects an ongoing mismatch in
pricing expectations between buyers and sellers. With
yields still amongst Europe’s lowest, buyers are
reluctant to transact at current prices with investors
thus adopting a “wait and see” approach.
Despite the weakening in Europe as
a whole, activity in some markets remained healthy. The
total value of deals actually increased in Finland and
Italy relative to the levels seen in recent quarters;
activity in both markets was driven by strong
cross-border interest, especially in the retail sector.
Michael Haddock, EMEA Research Director, CB Richard
Ellis, said: “The underlying property fundamentals
remain relatively sound. Expectations of economic
weakening are a cause for concern, but thus far the
impact on occupier demand has been limited. The European
investment market has started to see a correction in
pricing in the first few months of the year, with the
prime segment of the market having seen an outward yield
shift of somewhere between 25 and 50 basis points.
Following a rather rapid correction, the general feeling
is that the UK market is levelling off, with current
pricing not far from equilibrium, provided there is no
further deterioration in the economic outlook.”
Jonathan Hull, Executive Director of EMEA Capital Markets, CB Richard Ellis, said: ”Investors who are reliant on the debt markets for their capital have inevitably been less active, but there are many equity-based investors who are watching pricing developments closely. The German open-ended funds have been most active in seizing opportunities so far. In the first quarter of this year, they accounted for almost 20% of the Central London office market activity, and also were very active in the Nordic and Central and Eastern European markets. Given that these German funds are estimated to have current liquidity of around €22 billion, we expect them to be very active in Europe for the remainder of the year.”
Average Deal Size tumbles as large lot size deals dry up in European Commercial Property Market
The average transaction size completed in the European commercial real estate market in the first half of 2009 has fallen by more than half since the peak of the market in 2007, reflecting the extent to which the credit crunch has affected the ability of investors to complete large deals in today’s market. The average size of transactions agreed in H1 2009 in Europe fell to €18.4 million, a 59% decline from the €44.4 million average deal size recorded at the peak of the market in H1 2007, according to new research released today by CB Richard Ellis.
CB Richard Ellis selected by Pfizer to provide Facilities Management Services for 10 European Offices
CB Richard Ellis Group, Inc (NYSE: CBG) has been selected by Pfizer Incorporated (NYSE: PFE), the world's largest research-based biomedical and pharmaceutical company, to provide facilities management services across 10 of Pfizer’s offices in nine European cities.
The initiative is aimed at establishing world class operating practices throughout Pfizer’s real estate portfolio through direct integration with CBRE’s European facility management infrastructure.
Matthew Pullen, Head of CBRE Global Corporate Services EMEA, said: “Pfizer are globally renowned as a leader in their industry and widely acknowledged for their commitment to innovation. CBRE’s engagement with Pfizer reflects this innovation and represents another important step in the evolution our European facilities management business. We continue to see strong demand from the world’s largest occupiers to leverage our outsourcing platform in order to drive down costs and streamline operating processes.”
CBRE were selected by Pfizer following a structured market evaluation process conducted over the last nine months.
Industrial & Logistics Property Sector sees sustained investor interest
Despite generally subdued levels of investment activity in the European real estate market over the past year and a half, there is still evidence of interest in the industrial and logistics sector according to new research from CB Richard Ellis. The logistics sector continues to offer a relatively high and stable income, with overall performance less dependant on the more variable elements of growth assumptions, making the sector increasingly attractive to investors seeking defensive assets.
David Turner, Executive Director, Capital Markets, CBRE, said: “We have seen quite a few funds repositioning themselves to include logistics in recent times; although, like all sectors, investment volumes have been down, relatively the decline has been shallower and there is an ongoing trend towards logistics growing its share of overall European investment market, from 7% to 10% during 2008. We are aware of a number of parties looking to target this sector over the remainder of the year either through new capital-raising or by putting previously unspent funds into the market.”
Upturn in European Property Investment Activity in Q2 matched by stabilising yields
CB Richard Ellis Group, Inc. today announced a slight upturn in the European commercial real estate investment market, with turnover for the second quarter (Q2) of 2009 totaling €13 billion, a 12% increase on the €11.6 billion transacted in Q1 2009. The increase in activity was heavily weighted towards the last few weeks of the quarter.
This increase in activity has been matched by stabilising yields. The CB Richard Ellis EU-15 all-property average prime yield rose by just 2 bps in Q2 to 6.13% - a significant change from the recent trend that had seen the average yield increase by 103 bps over the previous four quarters. Of particular note was the fall in the average office yield (albeit by just 2 bps) as a result of tightening yields in Paris and provincial UK markets.
CEE Property Investment down 91 pct in first half-CBRE
Central and Eastern European (CEE) commercial property investment plummeted 91 percent year-on-year to around 560 million euros ($779.5 million) in the first half of 2009 as buyers and sellers hit a stalemate over pricing.
The CB Richard Ellis (CBRE) data obtained exclusively by Reuters demonstrates how credit market turmoil in western Europe has impacted nascent real estate markets further east, sparking a heavy exodus of debt-dependent foreign investors.
'Equity investors continue to see prime property in core Central European markets as relatively safe investments and therefore as good targets as part of strategies to diversify and seek relatively attractive returns outside their home markets,' said Jos Tromp, head of CEE research & consulting.
'But as the amount of available core product in Central Europe is limited and agreement on pricing is still proving challenging, investment volumes remained low in the first half of 2009,' he added.
CBRE, the world's biggest real estate broker, said first half investment activity was concentrated in Russia and the core Central European markets of Poland and the Czech Republic, which saw total deals of 249 million euros, 114 million euros and 73 million euros respectively.
As a result, turnover in these three countries accounted for almost 78 percent of the region's first-half 2009 investment volume, compared to 65 percent in the same period in 2008.
Tromp said the relatively high levels of activity in the Russian investment market has been driven more by local investors and rebounding commodity prices, which has stimulated demand for property investment.
Almost half of investment activity took place in the office segment, while retail was traded much less than in recent years, mainly because of challenges in securing finance for larger lot sizes and an investor preference to hold onto retail property in tougher economic conditions.
Just 17 percent of the total investment activity was for retail properties compared to 33 percent in the corresponding period last year.
Pavel Schanka, CBRE's director of CEE capital markets, said he expected market activity to increase in the second half of 2009 as foreign equity buyers started to compete with local buyers for prime investment opportunities and several suspended German open-ended funds returned to market.
Investors target Russia and Central Europe during slow first half for CEE Property Investment Market
Total investment turnover in commercial real estate in Central and Eastern Europe (CEE) totalled approximately €560 million in the first half (H1) of 2009, according to CB Richard Ellis’ forthcoming report, CEE Property Investment MarketView H1 2009. This total was down 86% from volumes seen in H2 2008 and down 91% compared with H1 2008.
CEE H1 investment activity was concentrated in Russia (€249 million) and the core Central European (CE) markets of Poland (€114 million) and the Czech Republic (€73 million). As a result, turnover in these three countries accounted for almost 78% of CEE’s H1 2009 investment volume, compared to 65% in H1 2008. Jos Tromp, Head of CEE Research & Consulting, commented: “Equity investors continue to see prime property in core Central European markets as relatively safe investments and therefore as good targets as part of strategies to diversify and seek relatively attractive returns outside their home markets. But as the amount of available core product in Central Europe is limited and agreement on pricing is still proving challenging, investment volumes remained low in the first half of 2009. The relatively high levels of activity in the Russian investment market has been driven more by local investors, significant yield movement in recent quarters, and rebounding commodity prices so far this year.”
Nissan Selects CB Richard Ellis as European Strategic Property Advisor
CB Richard Ellis Group, Inc. (NYSE: CBG) today announced that it has been selected by Nissan Europe S.A.S as its strategic property advisor for the region.
The European contract win marks an important expansion of Nissan’s relationship with CBRE in North America, where CBRE have been engaged as a full-service real estate partner since July 2007. The European contract, primarily comprising transaction and consultancy support, is the first of its kind awarded by Nissan across the European region. The contract reflects the continued growth and success of CBRE’s Corporate Services business in Europe, where earlier this year it announced other programmes with Europe-based corporates including StatoilHydro and France Telecom.
Mark Steele, General Manager G&A Controller at Nissan in Europe, said: “The appointment of CBRE is an important step in the development of our integrated global business support infrastructure. In a climate where operational efficiency is vital to success, we are committed to driving the performance of our property portfolio, taking full advantage of favorable property market conditions and maximising the value from our existing assets.”
Matthew Pullen, Head of CBRE Global Corporate Services, EMEA, said: “The expansion of our global relationship with Nissan represents a great vote of confidence in CBRE’s operating platform and worldwide corporate services capability. Current market conditions represent a significant opportunity for occupiers to reduce their exposure to real estate risk and cost through leveraging a unique set of property market dynamics. Property markets globally continue to favour the occupier with falling rents and increased vacancy in many markets.”
Nissan was founded in December 1932, and is among the top three Japanese automakers. As at 31 March 2008, Nissan’s global sales volume was 3.7 million units, equating to total net sales of 10,824.2 billion yen, and employed (on a consolidated basis) in excess of 180,000 employees.
New York still World’s most expensive Retail Market despite rental falls
Prime retail rents have fallen in almost every region across the world as the global recession impacts consumer sentiment and retail sales, according to new retail research from CB Richard Ellis (CBRE), Global Retail MarketView.
Demand for retail space has declined in most markets across the world as consumers cut back on spending and unemployment continues to rise in many countries. Emerging and less established markets have been most significantly affected. Buenos Aires saw the largest annual decline in retail rents year-on-year with a drop of 37%, followed by Warsaw with a 33% decline and Washington DC with a 26% decline. Whilst some markets have continued to experience year-on-year increases in retail rents, in many cases the current pressure is downward.
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Rising public debt encouraging sales of Government property assets
Rising public debt levels in response to the global banking crisis and recession appear to be encouraging a new wave of government property sales across Europe, according to new research from CB Richard Ellis (CBRE). CBRE has today released a new report, Governments Turn to Property Sales?, which considers the scope for sales of government property and reviews asset disposal plans in a number of major markets including France, Germany, Greece and the UK.
The report follows the announcement by the UK Government that it is to sell up to £20 billion of commercial property and related assets during the next 10 years while generating a further £5 billion in annual operating cost savings. With other governments also developing similar plans, the report analyses the investor appeal of such assets in the current market and considers the potential for these dispositions to become a more powerful global trend in the coming 12 months.
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Tokyo Now World’s Most Expensive Office Market. London’s West End and Moscow Ranked Second and Third Respectively
Tokyo’s Inner Central District has supplanted London’s West End as the world’s most expensive office market, according to CB Richard Ellis Group, Inc. (CBRE) Global Research and Consulting’s semi-annual Global Office Occupancy Costs survey. London’s West End is now the world’s second most expensive office market, followed by Moscow, Hong Kong’s Central Business District (CBD), and Tokyo’s Outer Central District in the CBRE report, which tracks office occupancy costs in more than 170 cities around the globe.
Global financial centres have been most significantly affected by declining occupier demand and, as one would expect, registered the most material decreases in office rents. In many cases, major global office markets have seen occupancy costs fall by 20% or more over the last 12 months. Across the 170 cities as a whole, office occupancy costs fell 2.8% over the 12-month period ending 31 March 2009 (on an un-weighted average basis) compared with an increase of 8% in the 12-month period ending September 30, 2008. Singapore had the largest year-on-year decrease in occupancy costs with a drop of 34%.
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CEE Commercial Property Investment Activity in April Beats Q1 2009 Monthly Average
Property investment turnover in Central & Eastern Europe (CEE) totaled approximately €100 million in April through a total of five transactions, according to CB Richard Ellis’ CEE Property Investment MarketView for April 2009. While this means that property investment remained low in April compared to previous years, it was about 32% higher than the monthly average for the first quarter of 2009. April’s transactions included three retail transactions along with one office and one industrial transaction. Jos Tromp, Head of CEE Research & Consulting, explains: “The core Central European markets of the Czech Republic and Poland accounted for four of the five April investment transactions and remain the most active CEE markets not only in terms of transactions closed, but also in terms of investor interest.”
Overall, April’s market performance confirms that the CEE property investment market remains slow and reflects the market’s reliance on investment by the German Open-ended Funds. The most active investor in CEE so far in 2009 has been DEKA with its acquisitions of Jungmannova Plaza in Prague and Grzybowska Park in Warsaw.
CEE markets have become more attractive to potential investors as yields have moved out across the region in recent quarters. Moreover, yields in certain Western European markets such as London, Paris and Madrid seem to be close to bottoming out, which could herald more stable yields for prime properties in CEE later this year. Tromp comments: “While further outward movement of yields from Q1 2009 levels is expected across CEE, a foundation is being laid on which property values in CEE can build.”
In the meantime, opportunistic buyers continue to express interest in the region, but this is not yet being realised in transaction levels as prices have not moved out to the extent deemed appropriate by investors. According to Pavel Schanka, Director CEE Capital Markets: “Equity rich investors are in a unique position in that they have limited competition and the opportunity to purchase top-flight buildings with strong income-generating potential that would not have come onto the market in normal circumstances. Now that yields have risen rapidly and rents are nearing sustainable levels in certain markets, CEE capital values are much more stable than they were a year ago.”
Weakening Demand Gives Tenants Scope to Negotiate in European Office Markets
With the fallout of the global economic downturn now hitting leasing markets across the world, landlords are under increasing pressure and tenants are initiating negotiations on rents and lease terms, according to the latest reports by CB Richard Ellis.
Leasing market conditions generally deteriorated over the first quarter of 2009, as sharply weaker economic activity and negative sentiment about future prospects led to a reduction in office take-up and general downward pressure on rents. The CB Richard Ellis office rent index for the EU-27 fell by 3.6% in the first quarter, with rents down by around 6.5% from their peak of last year. The quarter's decline reflects rental falls in most markets, although some key cities, such as Frankfurt and Milan, remained stable.
Vacancy levels are rising across Europe, driven upwards by a combination of weaker demand, new developments entering the market and, increasingly, occupiers looking to dispose of surplus space. Vacancy rates across the EU-27 group have risen by over a percentage point over the past year. As a result, further rental falls are expected in most major markets. However, new construction starts have virtually ceased in the region, which will constrain stock additions in the medium term. Although of little benefit in the short term, this will help rents to stabilise more quickly once some level of occupier demand returns to the market.
“Landlords are finding it increasingly difficult to lease vacant space, given the understandable caution being expressed by most occupiers at present,” commented Richard Holberton, Director, EMEA Research at CB Richard Ellis. “With those occupiers requiring space driving a hard bargain, and increasing choice available in the market, it is inevitable that we will see further weakening in rents and an increase in leasing incentives in most markets over the coming months,” Holberton added.
At the same time, changing market conditions are offering new real estate opportunities for occupiers as they too seek to cope with difficult conditions in their own markets. Companies across a broad range of sectors and geographies are experiencing weakening demand for their products and services, in many cases coupled with price deflation. Occupier behaviour is therefore largely characterised by caution, cost reduction and space rationalisation.
Driven to cut costs, occupiers are pursuing a range of new strategies to take advantage of the market. Even when they are not seeking additional space, tenants are increasingly able to negotiate with their landlords. Those who have impending lease expiries or break clauses are in a particularly strong position, as few landlords would welcome the prospect of a vacant building in the current market. Investors are focused on two factors at present: the quality and the length of their income stream. These factors determine the value of an asset, so a good tenant who offers to renew a lease is well placed to secure a rent reduction or other benefits.
However, the same pressures mean that even those who have no formal option to vacate are currently in a strong position, provided they are a good quality tenant. Occupiers are initiating discussions seeking rent reductions or rent-free allowances in exchange for lease extensions, or seeking to alter specific lease terms (such as dilapidations or reinstatement clauses) in their favour, thereby reducing liabilities they have to carry on their balance sheet.
Matthew Pullen, Head of Global Corporate Services EMEA, CB Richard Ellis, commented: “With corporate expansions scarce and asset values and investment returns falling, some office landlords are under huge pressure and the negotiating power is often in tenants’ hands in many European markets. Occupiers who have an opportunity to vacate and are actively prepared to do so are particularly well-positioned. The cost and quality of alternative accommodation available, as a greater choice of quality space enters the market, makes the threat of relocation credible to the landlord and therefore places tenants in an even stronger position.
“The ability to secure rent reductions or reduce space will depend on a wide range of factors including local market conditions, lease structures and the position and attitude of individual landlords. Yet the current market does present opportunities for occupiers who can combine awareness of real estate market conditions with an ability to influence further changes in their business cultures. Timing, market intelligence and high-quality advice are vital at this time.”
How Global is The Business of Retail in Belgrade?
The key activities pertinent to commercial real estate market and especially retail market both in Belgrade and the region have been significantly influenced by effects of global financial crisis, reflecting rent dynamics and the ratio between demand and supply. Namely, certain retail chains have temporarily suspended their further international expansion till economic and financial indicators are not more promising. Some of them have chosen franchising system to expand their businesses, thus reducing risks, costs and avoiding time-consuming bureaucratic procedures.
On the other hand, the current situation can be perceived as a chance for the companies with positive cash flow, as bold moves at this moment may guarantee larger market share in future, which would certainly be solid basis for ‘better’ times. Recent years mark ever greater interest of both local and international developers in retail developments. However, it is yet to be seen which projects shall be developed, which primarily depends on the readiness and capability of the banks to finance the announced projects.
The current size of existing modern shopping centers in Belgrade and elsewhere in Serbia still lags behind the regional trend in more developed countries of Central and Eastern Europe. According to a number of sq m of modern shopping stock, Belgrade with its 90 sq m of shopping stock per 1,000 inhabitants follows the same trend as Sofia, which is, however, considerably below the regional average of 180 sq m per 1,000 inhabitants.
When compared to other capital cities of the region, the difference is even greater, as the average of the capital cities of the region amounts to even 450 sq m per 1,000 inhabitants.
According to the same criterion, Belgrade is lagging behind Podgorica as well, which with the opening of Delta City shopping mall has 200 sq m per 1,000 inhabitants, whereas Zagreb currently holds 195,000 sq m of shopping stock which accounts for 250 sq m per 1,000 inhabitants
With regard to the official data big developers such as Big Centers, Plaza Centers, Delta, MPC, Ocean Atlantic, Pevec, Tus, TQ, Vondel Capital have not suspended any of the development projects announced; however, some of them say that the completion dates may be postponed.
With the opening of Shopping Mall Usce, the supply has been enriched with new brand names such as J. LO, Salsa, Glow, Lolipop, Prenatal, to name a few. Moreover, Delta City shopping mall as the first of the kind have attracted significant number of new international brand names, which led to the increase in the number of internationally recognised retailers present in Serbia in the past year from 14 to 17%, ranking Serbia as 47th on the global list (the research conducted by CBRE International). The highest rents in shopping centers in Belgrade have kept the same value in the range from 40 to 60 EUR per sq m, depending on the position and the size of the retail space.
In the meantime, due to the lack of available new retail space, central Belgrade shopping zone (Knez Mihailova Street, Terazije Square) still remains key retail location, especially for those retailers which enter the market for the first time. High pedestrian flow and the importance of such locations in retail sense account for low vacancy rate, whereas asking rents remain high, ranging between 80 and 120 EUR per sq m, while prime locations in Knez Mihailova Street even amount to 120+ EUR/sq m/month.
Nevertheless, what is notable in the past few months is the fact that certain number of retail units have faced tenant change due to unproportionately high monthly rents when compared to realized turnover.
The most elite locations shall certainly be the last to experience effects of global financial crisis and first to feel the benefits of economic recovery. These locations are not expected to mark further rent increase in near future nor significant fall. Should the crisis persist, the lessees will have the opportunity to ask for rent revision, lowering the current rent value even for the already signed lease agreements, which may turn the market into ‘Lessees Market”.
Rents Falling and Yields Rising Across EMEA in First Quarter 2009
CB Richard Ellis today announced the results of its Rent and Yield Indices for the first quarter of 2009, broadly reporting falling rents and rising yields across Europe.
Retailers Continue to Globalise Despite Downturn
Retailers have continued to expand their global footprint during the past 12 months, strategically developing long-term growth plans despite the global economic slowdown and a rapid weakening in sentiment, according to the latest retail research from CB Richard Ellis, the annual How Global is the Business of Retail? report. Retailers have continued not just to internationalise, but to globalise, with over 40% of all new openings during 2008 taking place outside the retailer’s home region.
Retail Property Outperforms Other Sectors in European Investment Market
CB Richard Ellis Group, Inc. today announced that European investment activity in the retail sector held up better than activity in the investment market as a whole in the first quarter (Q1) of 2009. Earlier this week, CB Richard Ellis revealed that overall investment turnover in the European market for Q1 had fallen by 44% quarter-on-quarter to €11.5 billion. In contrast, the value of retail property sales fell by just 7% - from €4.1 billion in Q4 2008 to €3.8 billion in Q1 2009.
CB Richard Ellis Reports Buoyant Year of Activity in Data Centre Market with Green Issues Dominating the Agenda
CB Richard Ellis, the world’s leading real estate advisor, has announced that the total take-up for 2008 in the European Data Centre market was 147,380 sq m across the five tier 1 markets. This was only seven per cent down on the highest ever take-up figure reported in 2007 and was 131 per cent higher than 2006.
Andrew Jay, Head of Technology Practice Group, CB Richard Ellis, said: “The buoyant activity amongst occupiers and developers of technical real estate in Europe during the course of 2008 has defied the global economic downturn and provides strong evidence that the data centre industry has reached a maturity perhaps not previously witnessed.
UK Dominates Soft European Property Investment Market in First Quarter as Investor Interest Turns to London
CB Richard Ellis Group, Inc. today announced that, as expected, the European commercial real estate investment market continued its fall with turnover for the first quarter (Q1) of 2009 totaling €11.5 billion. This level of activity marks a sharp decline from the fourth quarter (Q4) of 2008, which saw market activity of €20.6 billion, and reflects, among other things, the continuing impact of Lehman Brothers’ collapse last September on investor sentiment. Despite the sharp fall in activity, a slowing rate of decline in the UK and a pick-up in activity in several other European markets suggest investor sentiment may be starting to improve. The UK’s share of the European market increased to 37% in Q1 2009, up from 26% in Q4 2008.
CEE Property Investment Slows Further in Q1 2009
Recorded property investment turnover in Central and Eastern Europe (CEE) slowed further in the first quarter (Q1) of 2009 to a level of approximately €220 million, according to CB Richard Ellis. This volume represents approximately one-third of the volume transacted in Q4 2008, a slightly stronger slowdown than that experienced in the overall European investment market over the same period. Investment volumes for Q1 2009 have seen the CEE market move back to levels seen earlier in the decade, before the region experienced significant growth in property investment turnover during 2005-2007.
Currency Fluctuations Impacting CEE Property Market
Falling currencies in Central & Eastern Europe (CEE) are impacting property investors, developers and occupiers across the region, with some countries more affected than others, according to CB Richard Ellis’ forthcoming publication, CEE Currency Fluctuations ViewPoint.
Capital Values Fall 41% across CEE Due to Falling Rents and Yield Decompression
Capital values fell in Q1 2009 in office markets across Central & Eastern Europe (CEE) due to widespread yield decompression and falling prime rents in some markets, according to CB Richard Ellis’ CEE Offices Index MarketView report. CEE weighted prime capital values fell by 41% year-on-year (y-o-y) and 22% quarter-on-quarter (q-o-q) in Q1 2009. Declines have generally been steepest in Eastern Europe (EE), but more modest in some Central European (CE) and Southeastern European (SEE) markets. Whereas the y-o-y decline to capital values in Q4 2008 was caused entirely by yield decompression, falling prime rents in several CEE cities started negatively impacting the capital value index across the region in Q1 2009 for the first time since Q1 2005.
CB RICHARD ELLIS GROUP, INC. STRENGTHENS REGIONAL PRESENCE IN CENTRAL & EASTERN EUROPE THROUGH AFFILIATION WITH MBL
CB Richard Ellis Group, Inc. (CBRE) announced today that it has signed an affiliate agreement with MBL EOOD, a premier commercial real estate services provider in Bulgaria. The affiliation will leverage the leading capabilities of both companies by combining strong local market expertise with a global platform and client relationships.
The agreement, which will further strengthen CBRE’s presence in the Central and Eastern European (CEE) region, follows last year’s acquisition of Eurisko Consulting in Romania and affiliation with Atria Group in Greece.
LONDON, PARIS DOMINATE INVESTMENT ACTIVITY IN 2008
Despite the sharp fall in overall investment activity in commercial property in 2008, Europe’s largest cities dominated investment turnover for the year, according to new research from CB Richard Ellis. London and Paris maintained their dominance of the European office market, accounting for 36%* of all office transactions completed last year, or one in every three deals. This concentration extended to the market’s largest deals, with 44% of office deals over €100 million being done in either London or Paris.
RETAIL DEALS FEATURE STRONGLY IN 2008’S-LARGEST EUROPEAN PROPERTY TRANSACTIONS
Despite the decline in total retail investment transactions in 2008, as financing conditions remained difficult, retail deals featured prominently among Europe’s largest property transactions of last year, including two of the four European investment deals over €1 billion, according to CB Richard Ellis’ latest Retail Investment MarketView.
CB RICHARD ELLIS NAMED TO FORTUNE’S ROSTER OF REAL ESTATE INDUSTRY'S MOST ADMIRED COMPANIES
CB Richard Ellis Group, Inc. (CBRE) has been named to the annual roster of the Most Admired Companies in the U.S. real estate industry compiled by Fortune. The survey covers 64 industries and is one of the most definitive report cards on corporate reputations.
Companies are rated on a host of measures related to corporate performance. CBRE scored particularly well in people management, social responsibility and global competitiveness.
Mike Strong, Chairman of CB Richard Ellis EMEA, said: “Every day our professionals in Europe and around the world come to work focused on performing to the highest standards. Fortune’s recognition of CBRE as one of the most admired companies in our industry underscores the powerful brand that our people have built through their focus on service and value creation for our clients.”
Drawing from a base of some 1,400 companies, a total of 689 companies from 28 countries were surveyed by Fortune. Only companies that score in the top half of their industry survey were included in the Most Admired Companies roster. The attributes on which companies are measured include innovation; quality of management; people management; financial soundness; use of corporate assets; long-term investment; social responsibility; product/services quality; and global competitiveness.
NORDIC PETROLEUM COMPANY STATOILHYDRO ASA SELECTS CB RICHARD ELLIS AS NEW GLOBAL REAL ESTATE ADVISOR
In one of the most significant real estate services contracts ever to come out of Norway, CB Richard Ellis Group, Inc. (NYSE: CBG) announced today that it has been selected by StatoilHydro ASA (OSE: STL, NYSE: STO) as its preferred global real estate provider of transaction and project management services. StatoilHydro’s six million square foot global portfolio consists of over 70 properties in 40 countries.
StatoilHydro sought to establish a partnership with a global real estate advisor with a proven track record of delivering a real estate strategy that is capable of supporting the growth and expansion of its international business operations. This, coupled with CBRE’s ability to deliver a comprehensive range of real estate services on a truly global basis, were key determining factors in CBRE’s selection.
Matthew Pullen, Head of CBRE Global Corporate Services, EMEA, said: “This engagement represents a great vote of confidence in CBRE’s global and emerging markets platform. We are delighted that one of Norway’s largest and most respected companies has chosen to work with our firm and I am confident our new relationship will serve as a strong enabler for StatoilHydros’ global growth plans.”
Svein Harald Storli, Vice President of Facilities Management Services in Global Business Services at StatoilHydro, said: “The appointment of CBRE as StatoilHydro’s global real estate partner is an important step in the development of our integrated global business support infrastructure. As the pace of business activity continues to intensify, our ability to leverage enhanced capabilities from strategic partners is critical. Our new relationship with CBRE will enhance our ability to deliver a robust property services offering to our businesses worldwide.”
StatoilHydro ASA was formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro. StatoilHydro is one of the largest offshore oil and gas companies in the world and the largest company by revenue in the Nordic region. The company is a fully-integrated petroleum company with production operations in 13 countries and retail operations in eight countries.
Sheraton Brussels Hotel sold by CBRE Hotels
CB Richard Ellis today announced that it has sold Brussels’ Sheraton hotel, the largest hotel in the city, on behalf of global hotel and leisure company Starwood Hotels & Resorts, to the pan-European investment company International Real Estate Plc (IRE).
RENTAL MOVEMENTS REFLECT REDUCED LEASING ACTIVITY ACROSS EUROPEAN OFFICE MARKETS
European office markets generally saw downward pressure on rents over the final quarter of 2008, driven by a combination of lower levels of demand and increased levels of vacancy in most markets, according to CB Richard Ellis’ latest market report, EMEA Office MarketView Q4 2008. Across the 27 European markets, prime office rents fell by 2.5% in the fourth quarter of 2008, leaving them just above their level of a year ago.
CB RICHARD ELLIS NAMED CORPORATE REAL ESTATE PARTNER OF THE YEAR AT THE CORENET UK AWARDS
CB Richard Ellis’ (CBRE) Global Corporate Services team has been awarded the coveted Corporate Real Estate Partner of the year award at the 13th Annual CoreNet Global UK awards.
CBRE won the award for their four year partnership with Lexmark International, Inc. Originally an EMEA region contract, the instruction was expanded in December last year when CBRE was selected as preferred supplier to provide transaction management services across the US and Asia. As part of this global appointment, CBRE will provide services in 54 countries to 180 buildings covering a total of 7.5 million sq ft. This instruction reflects the success of a three-year contract with Lexmark, which commenced in 2005, providing strategic portfolio and transaction management services across the EMEA region. In 2006, CBRE was appointed to provide facilities management services for Lexmark’s corporate headquarters in Lexington, Kentucky.
OCCUPIER OPPORTUNITIES EMERGE AS RENT & SUPPLY CONDITIONS CHANGE ACROSS EUROPE’S OFFICE MARKETS
Occupiers are experiencing increased lease flexibility, greater choice of premises and greater incentives in the European office market according to the latest research by CB Richard Ellis. The report reveals that tenants are benefiting from current falls in leasing activity and the subsequent pressure that landlords are coming under to preserve cash flows and maintain capital values. Landlord flexibility has become essential as take-up across the main markets in Western Europe in 2008 declined to the levels seen in 2004-05.
2008 EUROPEAN Cross-border INVESTMENT LEVELS REFLECT diverse LOCAL MARKET conditionS
Cross-border commercial property investment activity fell to 45% of total European activity in 2008, according to new research by CB Richard Ellis. The overall decline reflects, to a great extent, the reduction in the number of large investment deals, which are often dominated by international investors (average deal size fell from €42 million in 2007 to €29 million in 2008). However there were significant variations in cross-border activity according to differing local market conditions.
GLOBAL PROPERTY MARKET TRENDS REFLECT SYNCHRONISED ECONOMIC DOWNTURN
Whilst the precise impact varies from one city or country to another, it is clear that the world's property markets continue to be impacted by global financial and economic concerns. Beginning with the U.S. sub-prime dislocation in the summer of 2007, market conditions deteriorated into a severe global credit crisis in 2008, which effectively shut down the global economy in the fourth quarter of 2008. No part of the world has escaped the spreading crisis, including the real estate sector, according to CB Richard Ellis’s Global ViewPoint for the fourth quarter of 2008, which reports on the global status of the commercial real estate markets.
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CB Richard Ellis appointed EXCLUSIVE provider of property services for dhl exel supply chain’s growth activity across emea
CB Richard Ellis’ Cross-Border Industrial and Logistics team has been appointed by DHL Exel Supply Chain (DESC), Europe’s largest global supplier of logistics services, to exclusively support their expansion programme across Europe, Middle East and Africa (EMEA).
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CEE Property Investment 37% down on 2007 Figures - € 3.5 billion of unleveraged equity waiting to be invested in CEE
CEE Property Investment MarketView Full Year 2008 - reports that total investment turnover in commercial real estate in Central and Eastern Europe (CEE) reached €9.5 billion in 2008. This is 37% down from the 2007 figure, but 47% up on 2005 results. The fourth quarter was extremely slow with a deal volume of around €580 million. Jos Tromp, Head of CEE Research & Consulting, explains: “This low volume is a direct result of a combination of the impacts on overall investment turnover of (1) the temporary freeze of a number of German Open Ended Funds that were active earlier in 2008, (2) the limited lending that is taking place, and (3) unclear prospects on pricing.”
EUROPEAN INVESTMENT ACTIVITY SLOWS IN Q4 - DESPITE BOOST FROM LATE-YEAR DEAL COMPLETIONS
CB Richard Ellis Group, Inc. announced today that European commercial real estate investment turnover slowed to €19.5 billion in Q4 2008, following two consecutive quarters of more stabilised turnover levels of around €27-28 billion. This brings the total 2008 turnover to €116 billion, a level comparable with that registered in 2004.
London, Moscow remain world’s most expensive office markets - Hong Kong’s CBD breaks into top five
London’s West End and Moscow remain the world’s two most expensive office markets, respectively, while Hong Kong’s CBD, Tokyo’s Inner Central District and Mumbai’s Nariman Point round out the top five, according to CB Richard Ellis Group, Inc. (CBRE) Research’s semi-annual Global MarketView/Office Occupancy Costs survey. The report tracks world markets with the highest as well as fastest-growing occupancy costs for the 12 months ended September 30, 2008.
Growth in CEE shopping centre stock set to continue, spreading space more evenly across region
Central & Eastern Europe (CEE) shopping centre stock is expected to grow by more than fifty percent towards 2010, according to new research by CB Richard Ellis (CBRE). Most CEE cities have already added substantial amounts of new shopping centre space to their markets in recent years, and the size of CEE’s shopping centre pipeline suggests this trend is set to continue. As a result, there is likely to be shopping centre space in nearly every CEE city by the end of 2010, with many CEE cities having significantly higher amounts of shopping centre space than today.
Prime retail real estate remains strong defensive investment in economic downturn
CB Richard Ellis today announced that it expects quality retail property to continue to appeal to major investors through the current market downturn. At its retail outlook briefing at the MAPIC retail conference in Cannes, France, the leading global property advisor said prime retail assets – particularly shopping centres – remain sought-after and good defensive investments amidst the global economic downturn. During the third quarter of 2008, retail transactions totaling €6.2 billion were completed in Europe. Germany, the UK and the Nordics were the most active markets, together accounting for almost 70% of completed deals (by value).
Retail rents grow in global strategic destinations
Retailers are focusing on some of the major global fashion capitals, pushing rents in the world’s most expensive retail locations even higher, according to CB Richard Ellis’ (CBRE) latest Global Retail Rents Survey.* Some smaller and secondary retail cities continue to see strong levels of growth, however global fashion capitals such as Hong Kong, London and Los Angeles now sit alongside these markets in the company’s top 25 fastest growing retail rents index, whilst simultaneously claiming some of the most expensive retail rents in the world.
European Investment Activity Stabilises in the Third Quarter of 2008
CB Richard Ellis Group, Inc. announced today that European commercial real estate investment activity remained stable in the third quarter of 2008 at €26.4 billion, slightly below the €27 billion registered in the second quarter of 2008. The stronger-thanexpected third quarter activity brings European investment market turnover for the first nine months of 2008 to €92.9 billion, a level comparable to that which was transacted for the same period in 2004.
Double Win for CB Richard Ellis at the European Property Awards
CB Richard Ellis (CBRE) has been named European Industrial Team of the Year for the second year running at the European Property Awards. The company’s capital markets team was also singled out, winning European deal of the year for its advisory role on the €4.4 billion sale and leaseback of Banco Santander’s 1,200 property portfolio.
CB Richard Ellis Group, Inc. continues CEE expansion with opening of new office in Montenegro
Budva, Montenegro, November 12 2008 – CB Richard Ellis Group, Inc. today announced that it has opened an office in Budva, Montenegro. The country is one of Central and Eastern Europe’s (CEE) fastest growing emerging markets and the future potential of its commercial real estate market is attractive to the company’s international clients.
Headed up by Nikola Cetkovic, CB Richard Ellis’ new office will provide a full service commercial real estate offering and specialist advice to clients looking to establish themselves in the local market. According to the Central Bank of Montenegro (Bulletin October 2008), 40% of total foreign investment inflow between January and September of this year was attributed to real estate.
The move into the country extends CB Richard Ellis’ platform in Central and Eastern Europe (CEE) and follows its acquisition earlier this year of Eurisko Consulting in Romania and, the opening of a new office in Ukraine.
Andreas Ridder, Chairman Central and Eastern Europe CB Richard Ellis, said: “The opening of an office in Budva is another important building block in the development of our Central and Eastern European business. EU funds have already been assigned to help enhance Montenegro’s infrastructure and, despite the impact of the credit crunch, it is currently one of the region’s top destinations in terms of growth potential.”
Nikola Cetkovic, Senior Director, Montenegro CB Richard Ellis also commented: “The country’s expansion potential makes this one of the most exciting markets in CEE and both local and international clients are already benefiting from our local knowledge and contacts.”
CB Richard Ellis named Global Number One in 2008 Euromoney Liquid Real Estate Awards
Los Angeles – October 1, 2008 – CB Richard Ellis has been named the top global real estate advisor in the 2008 Euromoney Liquid Real Estate Awards. This is the third time in four years that the company has won this prestigious award.
Euromoney, a leading publication of international finance, polls its readers - corporate and financial decision makers in more than 160 countries -- annually on the leading real estate advisors, developers and investors on a global, regional and individual country basis.
CB Richard Ellis won a total of 109 EuroMoney Liquid Real Estate awards. Besides the Global Real Estate Advisor award, the company was also voted worldwide number one for Corporate Real Estate Services, Property Management, Valuation, Transaction Execution, and Agency/Leasing.
“These awards are particularly significant because our clients and industry peers have singled out CB Richard Ellis for distinction,” said Brett White, CB Richard Ellis’ President and Chief Executive Officer. “The fact that we have won so many accolades this year – including the top award overall -- reflects the unwavering quality commitment that permeates our company at every level, and our ability to deliver exceptional results -- across business lines and global markets – through all market cycles.”
European Rents Remain Stable in the Third Quarter of 2008
Despite the economic uncertainty affecting European and world markets at the present time, prime rents across Europe remained stable in the office and retail sectors during the third quarter of 2008, with rents in the industrial sector falling slightly, according to the latest CB Richard Ellis Rent Indices. However, whilst the annual rental growth rates for all three sectors are still in positive territory there are growing indications of downward pressure on rents in a number of countries as the continued financial uncertainty reduces confidence in the occupier markets. This may in turn contribute to a general reduction in corporate occupation costs.
CB Richard Ellis Reports Significant European Data Centre Market Grow
CB Richard Ellis, the world’s leading real estate advisor, has announced that in the second quarter of 2008 take-up in the European Data Centre market has shown a positive response to the stagnation that took place in the first quarter, particularly in the London market.
Total market take-up for Q2 was 45,520 sq m, an increase on the previous quarter of 144 per cent. This was driven by a large shell transaction in the outer London market resulting in the second quarter representing the third highest recorded take-up since monitoring the five European tier 1 cities began in 1999.
CB Richard Ellis Group. Inc. Becomes First Commercial Real Estate Services Firm to Join the Climate Group
CB Richard Ellis Group, Inc. (CBRE) today became the first commercial real estate services company to join The Climate Group, the global, independent organization dedicated to accelerating action on climate change.
"The Climate Group is delighted to welcome CBRE to our coalition of companies leading on climate change issues," said Chris Walker, North American Director of The Climate Group. "As the world's largest commercial real estate services firm, CBRE is uniquely positioned to help slow climate change by working with its clients to increase energy efficiency in the commercial properties it manages.”
Sale & Leaseback Transactions Continue to Play Growing Role in European Transaction Continue to Play Growing Role in European Investment Market in First Half of 2008
Corporate sale and leaseback transactions have grown rapidly across Europe, rising by 585% between 2004 (€6.7 billion) and 2007 (€46 billion), and expanding from 6% of the European investment market in 2004 to 21% in the first half of 2008, according to a new report by CB Richard Ellis Group Inc.
Against the backdrop of economic uncertainty and a
substantial increase in the cost of corporate debt,
these transactions – a cashflow management solution –
are gaining momentum across Europe and accounted for 21%
of all European investment activity in the first half of
2008 – their highest percentage contribution ever.
Belgrade Hotel Market
Although Belgrade hotel market has experienced significant improvements over the past years, the overall agreement among tourist analysts and professionals is that there is still lack of both a sufficient number of high-end hotels and global hotel chains.
The majority of hotels in Belgrade are two and three-star hotels that need additional investment to meet the needs of more demanding guests. Lack of proper refurbishment and maintenance caused by financial difficulties and changes in the sizes and standards of hotel rooms over time resulted in a loss of former categorization for several hotels. Instead of four-star hotels, they were forced to charge for their services as three-star hotels. Another important feature is that there is a degree of discrepancy between some hotels’ claimed standards and the actual quality of the product. However, this problem can also be found in other countries.
Belgrade Housing Market yet to grow
CB Richard Ellis, world leading commercial real
estate services firm, which advises more clients
than any other property advisor worldwide
collates data and market intelligence from both
internal and external sources, thus providing
insight into real estate trends across Serbia.
CB Richard Ellis believes that general economic
recovery and tendencies in Belgrade housing
market promise a turning point in Belgrade
construction trends in the following years.
Namely, these tendencies will bring new
developments
that
include various amenities such as
playground, pool, gym, on-site management,
security gate etc. The current situation in the
market will certainly attract renowned
developers willing to offer condominiums and
compounds; this completion will eventually
result in a higher quality-price ratio of the
residential product in the market.
The Company Robert Bosch signed the Lease Agreement for the GTC project
After extensive and time-consuming search for the satisfactory office space, with unlimited support of the company CB Richard Ellis, we have decided to move our business to GTC Square as office space that fully meets all our corporate needs and requirements, which are key to successful everyday business performance, explains Jovanka Jovanovic, General Manager of the company Robert Bosch.
Everybody moving to New Belgrade
During 2007 the total speculative inventory of class A and B office space in Belgrade reached the amount of 350,000 sqm. New Belgrade still accounts for the greatest concentration of A class office space, thus becoming the main business area of the capital.
The Youngest Independent Country of the 21ST century
Open economy and business-friendly environment has become one of the cornerstones of Montenegrin economic policy. Key driving factors for many to invest in Montenegro undoubtedly lie in easy business start-up solutions, lucrative property market opportunities and still untapped business solutions.
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CB Richard Ellis d.o.o.
Airport City Belgrade
Omladinskih brigada 88b
11070 Belgrade
Serbia
Tel:+381 11 22
58 777
Fax +381 11 22
81 969
office@cbre.rs
marketing@cbre.rs