Russia's Big Deal
Pharmstandart recently purchased the 62,111-sm Northern Tower Business Center in Moscow for an estimated $260 million. This was the region’s largest transaction since 4Q09, according to Cushman & Wakefield. Moscow office properties traded in 11 out of 15 of Russia’s investment sales during the first half of the year, with five of those deals exceeding $100 million. Investor and tenant demand in Moscow for quality office space is almost back to pre-crash levels.
Markets to Watch
Asia Pacific — This region continues to see strong cross-border interest in quality assets, according to Jones Lang LaSalle. Among several notable 2Q10 transactions were Mori Trust Sogo REIT’s $1.2 billion purchase of a 50 percent joint ownership in the Tokyo Shiodome Building and a $200 million retail portfolio sale in Australia. Overall, investment sales volumes were up 21 percent in 2Q10 from 2Q09. Though the region saw a 34 percent decline in overall sales volume from 1Q10 to 2Q10, several large transactions are pending, and improving fundamentals are expected to fuel an uptick in investment activity before year-end.
It Costs How Much to Park Here?
There’s no better real estate investment than a parking garage in a busy city — especially if it’s in London’s CBD where the monthly parking rate of $933 topped Colliers International’s 2010 survey of world parking rates. London’s West End, Hong Kong, Tokyo, and Rome rounded out the highest monthly rates, which ranged from $873 to $615. In comparison, Midtown Manhattan’s monthly rate of almost $540 seems like a bargain. And go for the $200 monthly pass in Abu Dhabi, United Arab Emirates, instead of paying the world’s highest daily rate of $55.