THESE OFFICES WILL COST YOU A PRETTY PENNY
New York is a bargain for office rents when compared with its international competitors, according to a survey by Cushman & Wakefield. The city ranked fourth on the list. London, Paris and Tokyo grabbed the top three spots.
The World's Most Expensive Office Locations
|2004 Rank||2003 Rank||Location||City||Total Occupancy Costs (Dollars per sq. ft. per year*)|
|1||1||West End (Mayfair)||London||$164.70|
|4||4||Midtown||New York City||$84.82|
|9||9||Syntagma Square||Athens, Greece||$62.53|
|10||13||2/4 Districts||Dublin, Ireland||$60.96|
|*Rents are the top rents in each location, with each location being the most expensive in its country or region.|
|Source: Cushman & Wakefield|
OFFICE AND INDUSTRIAL OWNERS FLOCK TO SALE-LEASEBACKS
Sale-leaseback activity in the office and industrial sectors has been robust over the past few years. Larger businesses, especially publicly traded companies, are pursuing sale-leasebacks to shore up their balance sheets and free up capital for operations.
|(Millions of Sq. Ft.)|
|Source: Grubb & Ellis|
DEMAND PICKS UP IN THE INDUSTRIAL SECTOR
The amount of available sublease space in the industrial sector has declined from a peak of 114 million sq. ft. in early 2002 to 91 million sq. ft. at the end of 2003.
INVESTORS GROW HUNGRY FOR FAST-FOOD JOINTS
Sales are booming for fast-food chains. McDonald's for example, reported an increase of 10.9% in comparable sales between November 2002 and November 2003. The strong performance of the sector, particularly since 2000, has investors anxious to buy, according to Marcus & Millichap, and a limited availability of fast-food facilities is leading to high rates of appreciation.
THE CALL OF THE SUBURBS
Is suburban living becoming vogue again? The statistics seem to say “yes.” Between 1995 and 2000, more than half a million people moved from metropolitan to nonmetropolitan areas, similar to a trend previously seen in the late 1970s.
U.S. Net Migration
|1975 to 1980||1985 to 1990||1995 to 2000|
|Metropolitan to Nonmetropolitan||6,168,149||60,204,388||6,166,532|
|Nonmetropolitan to Metropolitan||5,622,077||5,969,024||5,656,044|
|Net Migration to Nonmetropolitan Territory||996,072||51,414||510,488|
|Source: American Demographics from the U.S. Census Bureau|