Commercial Real Estate Finance

Posts Tagged ‘Dubai’

We’ve already shared CoStar Group’s and ULI’s Commercial Real Estate Predictions for 2013. Now it’s time to get a more international perspective, courtesy of research from Colliers International. We’ll divide the list between East and West. Let’s start with the eastern hemisphere in the first installment of  Colliers International’s Top 9 CRE Predictions for 2013:

• Price Inflation will further increase activity in already-bustling Asian real estate markets.
• Property Yields in Asia will diminish as a result of highly accessible financing, investor appetite, and limited supply.
  
• The Chinese Government’s restrictions on the growth of residential real estate prices will send more investors to opportunities in commercial real estate.
• Japan’s Economy will rebound
• In China, logistics facilities will see increased investor demand as companies expand their logistics operations. Further, Asian food and manufacturing firms will realize the need for greater operational oversight and bring increased local business to these facilities as well.
• India’s Economic Growth will exceed expectations.
• Still, Rental Rates among India’s commercial real estate, office properties in particular, will likely decrease due to high vacancy rates.
•  Australia’s Dollar will remain strong against the USD and Euro.
• Also in Australia, A-REITs will make a comeback. 

You can read Colliers International’s entire “21 Predictions…” article, including commentary, by clicking here (PDF). Read the rest of this entry »

Obsessively tracking and compiling lists of the world’s tallest skyscrapers, I’ve been told, is “such a guy thing.”

Either way, the Council on Tall Buildings and Urban Habitat (CTBUH), an organization dedicated to such a guy thing, has lots of great lists and features on their website. Here’s their current ranking of the Top 10 Future Tallest Buildings in the World:

10. Manara Warisan Merdeka, Malaysia (height: 1,969 ft.)

9. Makkah Royal Clock Tower Hotel, Saudi Arabia (1,972)

8. Lanco Hills Signature Tower, India (1,982)

7. Triple One, S. Korea (2,034)

6. Shanghai Tower, China (2,073)

5. Wuhan Greenland Center, China (2,087) Read the rest of this entry »

The 2012 Global Real Estate Transparency Index, published by Jones Lang LaSalle (NYSE: JLL), is a great source of information and context for the most (and least) invested-in real estate markets. We’ve covered every region but one. Wrapping up our “Top 10 Real Estate Markets for Transparency” series, here’s a ranking of the

Top 10 Most Transparent CRE Markets in the Middle East & Africa:

10. Kuwait

9. Lebanon

8. Kenya

7. Saudi Arabia

6. Bahrain

5. Mauritius

4. Botswana Read the rest of this entry »

Commercial real estate is complicated. In recent months, I’ve discussed many of the concerns CRE investors must consider–local/global economics, politics, market conditions, culture, law, asset types, and so much else–and still I’ve barely scratched the surface. This industry doesn’t exist in a vacuum; when it comes to CRE finance decisions, everything is relevant. So it’s no surprise many developers, fund managers, principals, and others spend untold hours researching a particular opportunity before committing. Something as apparently straightforward as a multifamily or retail property deal can be riddled with what-ifs.

As if this industry weren’t complex enough, Saudi Arabian developer Jabal Omar Development Co. has found a way to make it even more complicated by adding one unlikely element: religion.

Bloomberg reports the developer is planning to construct not one but ten new hotels to accommodate the unrelenting flow of religious pilgrims to Mecca, Islam’s holiest city. Bloomberg’s article explains, Read the rest of this entry »

As I’ve said time and again, investors like stability. Those deploying capital into commercial real estate want assurance that their investments aren’t overexposed to uncertainties. This is why the U.S., economic doldrums not withstanding, remains a favorite for international investors. That prevailing caution is also why investors avoid entire parts of the world when considering potential property investments.

The economic potential of the Middle East is seldom discussed in the West. Obviously, its many opportunities are quickly overshadowed by more dramatic news.  The atrocities in Syria and political turbulence are grabbing all the headlines. But keep in mind the Arabian Peninsula is a huge place; we Westerners would be smart to view the region as more than simply a horrifying image on CNN.    Read the rest of this entry »

Here are the Top 10 Tallest Residential Buildings in the World:

10. Eureka Tower, Melbourne Australia (Height: 975 ft.)

9. We’ve the Zenith Tower A, Busan, South Korea (987.5 ft.)

8. Capital City Moscow Tower, Moscow, Russia (989.5 ft.)

7. Ocean Heights, Dubai, UAE (1,017 ft.)

6. HHHR Tower, Dubai, UAE (1,040 ft.)

5. Q1, Gold Coast, Australia (1,058 ft.) Read the rest of this entry »

Here’s a look at some of the largest construction projects throughout the world. The projects range in purpose, from entertainment and leisure to scientific research. The results have been ranked by cost, based on U.S. dollars.

10. Great Man-Made River Project – Libya – $27 billion
Since 1985, Libya has been working to irrigate 387,000 acres of arid land and provide several major cities with water.

9. Saadiyat Island – Abu Dhabi – $27 billion
With completion slated for 2018, this project will boast 27 square kilometers of cultural paradise.

8. Sellafield Nuclear Site – England – $30 billion
As the U.K.’s primary nuclear-fuel reprocessing facility, the plant spans 700 acres and employs 11,000 workers.

Read the rest of this entry »

Just when we thought Dubai’s office vacancy rate couldn’t get any worse strata titling happened.  Strata titling is a form of ownership that began in Australia as a means of horizontally dividing up apartment buildings amongst multiple owners.  For example, strata titling allows you to have a twenty story apartment building and 20 different owners.  This sort of subdivision amongst owners works fine when dealing with apartments, because tenants are only renting one unit at a time, but things get trickier when dealing in office space.
Read the rest of this entry »

We rarely do a post about parking garages, though it is an asset class we are familiar with, and have worked on to obtain financing on behalf of our clients.  Many people live in the suburbs and commute to work.  On days in which they may have client meetings, they have to drive downtown, and ostensibly find a safe place to park their car.  This generally means finding an acceptable parking garage that is close to your destination but that also won’t burn a hole in your pocket.  With that said, here are the top ten most expensive median monthly parking rates in global financial centers.You might want to avoid working in, or even visiting these places after reading this…unless you have a company card of course.

Singapore

10. Singapore – $192.89

9. Dubai – $240.00
Read the rest of this entry »

A “desert island” is one that is uninhabited by humans.  Usually this is because it hasn’t been discovered yet, the terrain is too tough to develop, or it is simply is too far away from a mainland to realistically support an economy. But what happens when islands that are created nearby a mainland for the sole purpose of development and occupancy by humans goes indefinitely uninhabited?  Perhaps those qualify as ‘deserted desert islands’. And if you want the scenic view of the economic crisis, deserted desert islands might be the place to start.  While Florida might provide you with some (oily) sand, vacant shoreline buildings, and some stalled beachfront developments, it is nothing compared to the picture above. That picture is of “The World,” a cluster of man-made islands off the coast of Dubai.  Read the rest of this entry »