The week in global real estate - 11 August 2020

The week in global real estate 11 August 2020  hero

A weekly update of the biggest real estate news from around the globe.

Institutional investors

  • Australian fund manager Dexus has secured $70M in funding for its healthcare portfolio. Part of the funding has been used to purchase a Brisbane office occupied by radiologists for $36.5M. More info here.

Retail

  • Mall owner Simon Property Group is in talks with Amazon to turn some of its anchor department store spaces, such as spaces previously occupied by JC Penny and Sears, into fulfilment centres for Amazon. More info here.

Office

  • The City of Parramatta in Sydney has begun construction of a $130M civic building as part of the Parramatta Square urban regeneration programme. The six-storey building is targeting a 5-Star Green Star rating and features high thermal performance, solar panels, and water harvesting and re-use systems. More info here.
  • Facebook has leased 68,000 sqm of office space in a former post office building in New York. The office sits between Madison Square Garden and Hudson Yards. More info here.
  • Cancer research company Guardant Health has leased 23,000 sqm of space in the former Hewlett Packard offices in Silicon Valley. The space will house 1,200 employees. More info here.
  • Marketing firm Mother New York has taken up a new 15-year lease for 5,600 sqm in a refurbished warehouse space in New York. The deal has been under negotiation for a year and was signed under new terms due to the impact of the coronavirus pandemic. More info here.
  • Conde Mast is considering moving out of One World Trade Center only six years after moving in. The company has a 25-year lease for 21 floors in the tower. Parent company Advance Publications is looking for a new Midtown home for the company. More info here.
  • Co-working provider Smartworks has leased 56,000 sqm of space in India to expand its business. The company has grown since 2016 to provide 60,000 desks across the country. More info here.

Industrial

  • PepsiCo have signed a 26,000 sqm lease in a new industrial park in Denver, Colorado. The facility will open late 2021. More info here.
  • Amazon will open its eighth distribution centre in Florida with a 55,700 sqm facility in Tampa Bay. More info here.
  • Amazon is also opening a seventh fulfilment centre in Tennessee. The 79,500 sqm facility is due for completion late 2021. More info here.

Hotels

  • Construction has begun on a mixed-use tower that will house a new 250-room QT Hotel in Parramatta, Sydney. The 55-storey tower will also include luxury apartments. More info here.
  • The British Colombia government was the largest purchaser of hotels in Canada for the second quarter of 2020. The government was purchaser on four of the twelve transactions and accounted for more than half of the value sold. The deals are to support housing initiatives. More info here.

Housing

  • A study by the Australian Reserve Bank has shown apartment buyers in Sydney are paying 68% more than the cost to build new apartments. This compares to 20% in Melbourne and 2% in Brisbane. More info here.

Sustainability

  • The University of Illinois has begun work on a $30M solar farm to double its production of renewable energy. The farm will cover almost 54 acres of land and generate 20,000 megawatt hours of electricity each year. More info here.
  • Hong Kong developer Swire properties have obtained a $200M green loan from OCBC to implement green initiatives across its properties. Initiatives include environmentally friendly technology to reduce energy consumption and to reduce waste. More info here.

Related Experts

Chris Farhi

Director | Strategic Advisory

Auckland CBD

Chris is a Director within the Strategic Advisory team. The team helps you with your big property decisions and complex transactions.

Chris' advisory work focuses on:

  • Decision making processes (eg property strategy, business cases, feasibilities, etc)
  • Tenant representation for large lease transactions (office,  industrial and specialist-use)
  • Multi-site networks (eg consolidation strategies, optimisation, etc)

Chris’ background in brief:

  • Property strategy advisor for some of New Zealand’s most successful private sector, public sector and non-for-profit organisations.
  • Tenant representative (tenant-paid lease negotiator) for organisations ranging from small-to-medium enterprises through to major listed companies and government agencies.
  • Specialist skills in commercial leasing, financial analysis and market research.
  • Part-time lecturer at the University of Auckland Business School and commercial leasing trainer for the Royal Institution of Chartered Surveyors.

Chris’ qualifications include Honours degrees in both Civil Engineering and Property from the University of Auckland, and a Master of Philosophy from the University of Cambridge, UK. He is a Chartered Member of the Royal Institution of Chartered Surveyors.

Outside of work, Chris is a combat engineer in the NZ Army Reserve and a keen baker.

View expert

William Silk

Analyst | Stategic Advisory

Auckland CBD

William joined the Strategic Advisory team as an Analyst  in the Auckland CBD office in 2019, after completing studies at The University of Auckland. 

Specialising in reseasrch, reporting and analysis to support strategic commercial proprety decision making. 

View expert