The week in global real estate - 5 October 2020

The week in global real estate  5 October 2020  hero

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

Office

  • The Australian Prime Minister is urging companies to bring employees back to their offices to combat low occupancy in the CBD. Office occupancy levels are currently 52% in Brisbane, 35% in Sydney and 10% in Melbourne relative to pre-COVID19 levels. More info here.
  • Bunnings will be anchor tenant for a new 19,500 sqm office building in Richmond, Melbourne. Bunnings are taking 13,900 sqm of space in the 5-star Green Star development. More info here.
  • Netflix has leased almost 15,900 sqm of space in Burbank, Los Angeles for a new animation studio. Netflix has substantially increased its LA presence over the last few years. More info here.
  • Apple has leased 37,000 sqm of office space in Bengaluru, India after launching its online retail store in the country last month. Apple has also announced its first physical store in Mumbai will open next month. More info here.
  • Brookfield India REIT is looking to raise capital through an IPO. The REIT owns four campus style office parks in top tier cities in India. More info here.
  • Amazon is planning to take some of Citigroup’s office space in Singapore’s Asia Square Tower. The company will take three floors covering around 8,300 sqm of office space. More info here.

Industrial

  • Tesla is increasing its production capacity to meet the demand for its electric vehicles. It plans to have a Gigafactory on every inhabited continent. They are using prefabricated building systems in Berlin and Shanghai to build their industrial facilities in record time. More info here.

Retail

  • UBS is predicting that Australian shopping centre rents will rebase at around 20% lower as tenants renegotiate deals. Cash collection rates had been below 50% for the June quarter but have risen to 82% for Scentre Group and 64% for GPT Group. More info here.
  • The American Dream mega-mall has reopened after struggling to pay bills through the pandemic. Owner Triple Five remains late on mortgage payments on its US$1.4B mortgage over the Mall of America, which was the security for financing the mega-mall project. More info here.

Housing

  • Apartment sales in Manhattan have dropped by 46% in Q3 2020, leaving around 10,000 apartments currently on the market. This is a record number of active listings for the city. More info here.

Hotel and tourism

  • The third and final Crystalbrook Collection hotel is set to open in Cairns during November. The five-star hotel has 311 rooms and guest facilities including a glass bottom pool. It was originally set for a March opening date. More info here.
  • Construction has begun on the first 1 Hotels branded accommodation in Melbourne. The 1 Hotel Melbourne will offer 277 guest rooms within a mixed-use residential complex adjacent to Goods Shed No 5, one of the cities oldest heritage sheds. More info here.
  • Star Entertainment Group will lodge a second development application for its waterfront site in Pyrmont on Sydney’s Darling Harbour. The plans show two mixed-use towers (hotel and residential) with heights of 110m and 180m. More info here.

Government

  • South Australia’s state development body, Renewal SA, has purchased two sites in central Adelaide that were primed to be Kaufland supermarkets. The German retailer pulled out of its planned entrance to the Australian market in January. More info here.
  • Lendlease has put the finishing touches on the new harbourside civic space in Sydney’s Barangaroo, at the base of its One Sydney Harbour Project. The new amphitheatre style space delivers almost 9,500 sqm of public space. 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