The week in global real estate - 18 August 2020

The week in global real estate 18 August 2020  hero

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

Office

  • Dexus and Frasers Property Australia have revealed plans for the $2.5B Central Place Sydney as part of the new technology precinct at Central Station. The development will feature two 39-storey towers which will be powered by renewable energy and designed to accommodate a socially distanced workforce. More info here.
  • SoftBank has committed another $1.1B to WeWork as the company continues to struggle. The company's membership base has dropped 12% in the second quarter of this year. More info here.

Industrial

  • Goodman’s development pipeline in Australia has increased to $6.5B, an increase of 59% above last year. The increase is driven by demand from e-commerce, technology and big data, with Amazon being the company’s biggest customer. More info here.
  • Tesla has begun construction of the world’s largest battery storage facility in Monterey, California. The facility is expected to come online in 2021. There will be an option to upgrade its capacity to power every home in San Francisco for six hours. More info here.
  • Steiner Studios has signed a development agreement on a 49-year ground lease in Sunset Park, Brooklyn to expand its film and television studios. The agreement represents at least $320M in private investment. More info here.

Retail

  • UK landlord NewRiver has said footfall at its retail properties is down 32% on the same period last year, despite 93% of its occupiers reopening. More info here.
  • UK’s Capco has reported a similar reduction in footfall, with net rental income down 41% over the past six months. The value of its Covent Garden portfolio has also dropped 17% to £2.2B. More info here.
  • Greek eatery, Avra Estiaorio has leased a 1,500 sqm space on the ground floor of the Rockefeller Group Time & Life building in New York. Last week Rockefeller also renewed the lease for Ted’s Montana Grill in the same building. More info here.

Short-stay accommodation

  • Serviced apartment operator The Ascott Limited has opened some of its apartments as spaces for hire for other uses, adapting to lower numbers of travellers. The apartments can be used for office, yoga studios, satellite kitchens or parcel pick-up centres. More info here.
  • AirBnB’s revenue fell to $335M in the last quarter, down from $1B in the same quarter last year. More info here.

Housing

  • Belgian company Kamp C has finished construction of its first 3D printed house with a cement printer. The house was printed in 15 days and only required one person to operate the machine once the printer was set up using cranes. More info here.
  • UK build-to-rent developer Moda Living has partnered with Utopi to utilise digital infrastructure and smart building technology in its developments. This will improve building operations and sustainability of Moda properties. More info here.
  • Building reforms in the UK propose making it easier to “tear it down and start again” on housing projects. Plans would streamline the planning process and enable lower costs. More info here. 
  • Australian Homecorp Property Group has been backed by Morgan Stanley to complete its $200M build-to-rent precinct on the Gold Coast. The precinct has approval for 386 units across four towers between 9 and 16-storeys in height. 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