The week in global real estate - 19 October 2020

The week in global real estate  19 October 2020  hero

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

Office

  • Results from a survey by CoreNet Global in the US showed that at least half of businesses expected to have only have half of their staff back in the office by June 2021. 64% of respondents also felt the 9-5 Monday-Friday work week was now a thing of the past. More info here.
  • The UK's Office for National Statistics showed the 67% of 24,500 British businesses do not intend to keep working from home as a permanent business model past the end of the pandemic. More info here.
  • Microsoft is implementing a hybrid-workplace where employees can spend up to half of their working hours out of the office. Employees can also seek approval from their manager to permanently work from home. More info here.
  • Dropbox has announced that it will be making remote working standard practice. Its mandatory work from home policy has also been extended to June 2021. More info here.
  • A record office rent has been signed for a 280 sqm office space in London’s Mayfair at £2960 per square metre. More info here.
  • TikTok's owner ByteDance is moving to a bigger 5,500 sqm office at One Raffles Quay in Singapore. The move will help accommodate the company’s rapid growth. More info here.
  • WeChat's owner Tencent Holdings has chosen a co-working space for its first office in Singapore. The company will have just over 200 seats in the JustCo space on Raffles Place. More info here.
  • The Howard Hughes Corp has just completed the tallest skyscraper in 30 years in Chicago. 110 North Wacker is 55-stories tall and has 140,000 sqm of office space. More info here.
  • North Dakota state agencies are looking to save more than $1M annually by downsizing office spaces after the success of remote working through the pandemic. 7,200 of its 8,500 employees have been working remotely. More info here.

Industrial

  • Australian brick manufacturer CSR has sold 8.6 ha of industrial land in western Sydney for $84.3M. The site had become surplus to CSR's requirements and is expected to be redeveloped into warehousing. More info here.
  • Americold Realty Trust is continuing to expand its cold-storage footprint around the globe with the acquisition of Argo Merchants Group for US$1.7B. The deal means Americold will have 229 facilities across four continents. More info here.

Retail

  • Luxury retailer Akris has acquired three properties on Madison Avenue, New York totalling 3,112 sqm for US$45M. The price is one of the lowest per square metre in the area for over a decade. More info here.
  • Hugo Boss is looking to exit its lease at The Shops at Columbus Circle in New York. The centre has remained shut for months due to the pandemic. The lease equates to US$8.3M annually for the 1,465 sqm space. More info here,

Hotels and tourism

  • The Roosevelt Hotel in New York will permanently close due to the impact of the pandemic. The hotel has been open since 1924. More info here.
  • London Resort Company Holdings is planning to build the first theme park in Europe since Disneyland Paris in 1992. The development in North Kent on the River Thames will cover 465 hectares and cost £3.5B. More info here.

Housing

  • New South Wales has updated its guidelines for the design and construction of social housing. They aim to improve the well-being of tenants. The upcoming budget is expected to announce major investment in social housing. More info here.
  • Australian developer Lendlease and fund Aware Super have partnered to launch their first major regeneration project in New York: a $1B build-to-rent development. The 60,000 sqm tower will have more than 800 units with one third being designated as affordable housing under the Affordable New York Housing Program. More info here.
  • WeWork co-founder Adam Neumann has returned to real estate by investing in Alfred Club, a start up that helps apartment building operators provide luxury services. He previously attempted to start a residential offering for WeWork called WeLive. More info here.
  • Capitaland’s serviced apartment business unit The Ascott has signed up 2,100 new units across China in the last three months. Outside of China they have also signed up 1,600 new units in markets such as Austria. 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.

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