Despite a decline in industrial production, a lack of inventory has enabled global growth in industrial rents, according to CBRE’s Global Industrial MarketView report.

Leasing from logistics operators and retail distributors fueled the increase, the report said.

CBRE’s Global Industrial Rent Index rose by 0.5% quarter-over-quarter in the third quarter of 2011, and by 1.7% year-over-year, driven largely by activity in Asia. Rents have stabilized in the U.S., Europe and Africa.

“Global industrial rents now reflect 2006 levels,” said CBRE’s chief economist, Raymond Torto.

Rents in Asia have risen above pre-recession levels. At an average price of $21.84 per square foot for prime industrial space, Tokyo boasts the highest industrial rents per square foot in the world, followed by London, Singapore and Sao Paulo. – Guelda Voien
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From left: New York, London, Paris and Hong Kong

The world’s wealthiest individuals are continuing to purchase luxury residential property in key international cities despite fluctuation in the global economic marketplace, according to a report by Christie’s International Real Estate cited by real estate expert and former columnist for The Real Deal Michael Stoler on his blog.

More than 67 percent of Christie’s agents reported an increase in sales activity in the first eight months of 2011 when compared with the same period in 2010, especially in cities like New York, Beverly Hills, London, Paris and Hong Kong. Overall, the homes of the super rich in the top 10 cities worldwide rose by an average of 10 percent in value in the first six months of this year. More than 87 percent of buyers paid cash, the report notes.
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Source: Credit Sesame (click chart to enlarge)

Economists may still be calling U.S. real estate overpriced, but property in the nation’s biggest cities is still relatively affordable compared with the rest of the world, a chart compiled by credit management system Credit Sesame shows (see chart above). At an average of $1,068 per square foot, Manhattan homes seems cheap compared to Paris, which costs an average of $3,287 per square foot for a residence, according to Credit Sesame’s data. Also more expensive than Manhattan are cities such as Oslo, Luxembourg, London, Hong Kong and Beirut. Living in Houston, Texas is much more affordable than living in Al Kut, Iraq, $54 per square foot compared to $262 per square foot respectively. Miami comes in at $182 per square foot. — Katherine Clarke
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Manhattan-based real estate investment bank the Carlton Group is expanding into Europe in an effort to become a bigger player overseas, according to Crain’s. The expansion has already begun with the firm opening a London office in April. Howard Michaels, chairman and chief executive, says Russia will be next, potentially opening by the end of 2011. Michaels is attempting to cash in on changed attitudes amongst foreign investors. “Everyone always said overseas investors have an increased appetite in Manhattan. Today that has never been more true,” he said. [more]

While New York City has long been known as a haven for pricey apartment buildings, London can now boast the most expensive condominiums in the world, according to this video from Gizmodo. One Hyde Park in London includes 86 units, one of which sold for $225 million, or $9,500 per square foot. The homes opened today for owners. [more]

City overtaken by first-place London on occupancy, but still beats other global competitors

Click image for larger version

From the May issue: New York hotels saw steep price declines last year and watched occupancy rates fall behind those of London, its main international rival. Still, the Big Apple fared better than Dubai and other high-end markets. Hotel occupancy, one of the key statistics tracked by the hospitality industry, dropped 5.7 percent to 77.2 percent in New York last year, putting it in third place behind London, which had an 80.5 percent occupancy rate, and Sydney, which logged 78.5 percent occupancy. That was a shift from 2008, when New York City had the highest hotel occupancy of all the cities tracked by The Real Deal, with an average of 81.9 percent of its rooms filled during the year, according to data from STR Global.

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From the May issue: In a city where cramped studio apartments generate six-figure bidding wars, it’s hard to imagine a place where real estate is even pricier. But there are cities out there that can make Park Avenue look like a bargain. According to data from London-based brokerage Knight Frank, $1 million would buy you only about half a studio in Monaco.

This month, The Real Deal took stock of how New York real estate compares to other major international and U.S. cities, from London to Los Angeles. We chose 25 preeminent cities, in different geographic regions, that compete with New York for real estate buyers and tourist dollars, and pored through real estate data from each one.

Which city is struggling most to weather the worldwide financial meltdown? Which has the glitziest and most expensive stretch of retail stores on the planet? Which is stuck trying to unload the most empty office space? Where are the most expensive hotels in the world? And which urban mecca has the world’s most expensive coffee? The answers will undoubtedly surprise you. [more]

Rebuilding Chile could cost an estimated $30 billion

From the April issue: More Chilean property owners are coming forward to pursue legal action against their buildings’ developers, whom they allege built structures not sturdy enough to withstand the 8.8-point earthquake that ravaged the country in February. The demand has grown so great that a 300-person pro bono legal group called Legal Help Chile has formed to help property owners whose homes or investments were not properly constructed, according to the Santiago Times. “The program’s goal is to legally position the community, clear their doubts, indicate the paths they can follow or what institutions they can turn to,” Pablo Guerrero, president of Legal Help Chile, said. Compiled by Amy Tennery [more]

From the December issue: After a catastrophic slide in which building prices fell by more than 40 percent, London’s commercial real estate market seems to have hit its bottom. While New York commercial property is still searching for a floor and is expected to continue falling, in its rival and sister city across the Atlantic, things are looking up. Sale prices have started inching upward, prime-area rents are stabilizing, and new leases are increasing — albeit from a very low base and with vacancy rates still rising. It’s hardly a return to boom times, but market analysts say the third quarter of 2009 was the best since the financial crisis hit last fall. “We very much believe the bottom has been reached,” said James Young, head of Cushman & Wakefield’s office in London’s financial district. “We’re a lot more optimistic than perhaps some other markets around the world.” Eighteen months ago, Young said, many thought London would lose the prominence it shares with New York as a global financial center. Now, with the health of the banking sector improving, “that fear seems to have dissipated,” he said.  More

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