The week in global real estate - 21 September 2020

The week in global real estate  21 September 2020  hero

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

Office

  • Dexus has taken a 50% stake in Atlassian’s $1B tower in Sydney’s tech precinct. Atlassian are leasing 85% of the 60,000 sqm building. More info here.
  • JP Morgan’s planned work from home programme has seen productivity slip, especially on Mondays and Fridays. The bank is now urging employees to return to the offices. More info here.
  • SL Green has opened its One Vanderbilt office tower in Midtown East, New York City. The $3.3B tower is 427m tall and is nearly 70% leased. More info here.
  • Facebook is purchasing a 37,000 sqm office campus in Bellevue, Washington from Recreational Equipment (RE). RE has planned to occupy the new campus but are now opting to work from home so have cashed out. The $367M deal takes Facebook’s space in the area near Seattle to more than 280,000 sqm. More info here.
  • Barclays is reportedly looking to move its US headquarters from Times Square to Hudson Yards. They are looking for 46,000 sqm of space. They are currently in the former Lehman Brothers building after the company was acquired by Barclays. More info here.
  • UK commercial property landlords could be left with unpaid rent bills of £4.5B this year due to the impact of COVID19. The moratorium on business evictions due to expire in September 2020 has also been extended to the end of the year. More info here.
  • The Crown Estate in London has seen occupancy of its West End office buildings improve but still only averaging 25% occupancy as its tenants’ employees work from home. The Estate has more than 460,000sqm of office space in London. More info here.

Industrial

  • Facebook are adding 140,000 sqm of data centre space at their Newton County data centre campus in Georgia. The new space is across 3 buildings and will cost $1B. More info here.

Hotel and tourism

  • TFE Hotels will open its 168-room Vibe Hotel Subiaco in Perth next month. The hotel will be Vibe’s first new build hotel. It features a rooftop bar. More info here.
  • TFE Hotels are also opening a Vibe hotel in Hobart in November. The 142-room hotel will feature elements of the convict history of Hobart and will be the city's first mixed use development with residential and retail space. More info here.
  • Melbourne based Chiodo Corporation has lodged plans to build a $300M hotel in Port Douglas. The 253-room Accor Fairmont Port Douglas will be the first new hotel built in the region in 20 years. More info here.

Retail

  • The building containing Louis Vuitton’s Melbourne flagship store on Collins Street has been placed onto the market with price expectations over $50M. The 4-storey building built in 1888 has both ground and first floors leased to LV until 2026. More info here.
  • Scentre Group is placing $3B of hybrid notes on the US market to prop up its balance sheet. Rent collections have increased for the company with 86% of gross rent collected for the month of August. More info here.
  • E-commerce platform operator Shopify have subleased a physical store space in Soho, New York City from Google. The store will be used to support its online merchants with classes and other events. More info here.

Housing

  • Mitsubishi and Lendlease have topped out their $2.9B 719-unit residential East Tower in Docklands, Melbourne. The project is the first building to be built in the mixed-use Melbourne Quarter precinct. 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