Cushman & Wakefield - International Investment Atlas - 2014 March

INTERNATIONAL
INVESTMENT ATLAS
SUMMARY
A Cushman & Wakefield Capital Markets Research Publication
2014
International Investment Atlas Summary 2014
INTRODUCTION
Welcome to the Cushman & Wakefield International CONTENTS
Investment Atlas publication. This report has been prepared
Global Investment Activity 2–15
by Cushman & Wakefield to provide an introduction to the
Asia Pacific 7
world’s key commercial real estate investment markets in
2013 and an indication of activity in 2014.
The report covers the main areas of activity, showing the size and status
of each and giving a flavour for the real estate sectors and a brief view on
where each is heading.
This summary report is supplemented by three Regional Market Profiles EMEA 8
for The Americas, Asia Pacific and EMEA, all of which include page by
page country overviews, totalling 55 global countries.
The Americas 9
Global Investment Volumes 16–17

Global Yields 18
Research Services 19
Capital Markets Contacts 20–22
All sections of the report as well as global contacts
are free to download at our dedicated report website: Regional Market Profiles 23
www.investmentatlas.cushwake.com
1
GLOBAL INVESTMENT ACTIVITY

PLOTTING A COURSE FOR GROWTH Shanghai – China
The global market turned a corner in 2013, with investment activity

and values picking up as recessions ended, business sentiment
rallied and increased liquidity lapped the shoreline of most global
markets. Indeed, the final quarter was buoyant, delivering an annual
total of USD1.18 tn, a 22.6% rise on 2012. This was the highest
global total since 2007 and helped to push prime yields back down
to pre-crisis levels.
Growing levels of optimism and activity have their roots in a belief
that the global economy is set for calmer waters and financial
imbalances are on the mend. This view may have tempered somewhat
this year as tapering got underway and political instability increased,
but in 2013 it led to an increase in risk appetites, manifesting in a push
to invest across borders, a move towards second tier assets and a
narrowing in the prime to secondary yield gap.
FIGURE 1 – GLOBAL PROPERTY INVESTMENT VOLUMES
400 8.2%
Quarterly investment volumes (USD bn)
350
8.0%
All-sector average prime yield
300
7.8%
250
200 7.6%
150
7.4%
100 While trends are mixed, the speed with which sentiment has turned supply and demand, both in terms of quantity and quality given the
50 7.2% has surprised many, leading some to question whether investment changes underway in what occupiers want.
markets are getting too far ahead of the occupational cycle and
0 7.0% The reaction of occupiers to the global recovery has been patchy
Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 whether a liquidity driven bubble will burst when the Federal Reserve
to date, with some areas of increased take-up but few with rental
and others start to rein in quantitative easing (QE). The degree of
growth and some markets still being fed by large development
unanimity on the positive outlook at the turn of the year was certainly a
pipelines including emerging markets in Asia, Central and Eastern
Investment Volume Yield (ex multifamily) cause for caution, but that has now unwound. While there are
Europe and Latin America. At the same time, new occupier demand
Source: Cushman & Wakefield, RCA, KTI and Property Data: Deals over USD5 mn including land downside risks and the recovery is very much multi-speed, tapering
patterns are emerging globally, while demand from growth sectors
should be coincident with better economic and corporate confidence
Stronger growth was seen in most core markets, from the USA to the led by TMT are exciting markets in all regions, led by London,
– and hence should precede an increase in occupational demand and
UK, Japan, Germany and Australia, while a surge in China, led by land New York, Singapore and Hong Kong.
growing property incomes. What is more, the more diverse range of
sales, put the icing on the cake for a vintage year by volumes and rate
current opinion hopefully sets the scene for differing investment Overall, the volatility of the equity market in the opening weeks of the
of growth. Emerging market trends have been diverse however, with
objectives, resulting in a more varied, active and dynamic market. year is in many ways a return to normality and a reminder of the
second tier Chinese centres up as well as a host of other countries such
challenges and opportunities ahead. For real estate these are perhaps
as Mexico, UAE, Vietnam, Malaysia, Russia and Turkey. At the same time With bond yields already increased, the main impact of an end to QE
best encapsulated by the view that it will be change rather than growth
emerging market stalwarts such as Brazil, India, Indonesia and Thailand will be felt in emerging markets as liquidity drops. However, it should
which drives success, be that in investment and funding or in changing
saw volumes fall as a mix of political and economic factors impacted. also be taken as a reminder that investors need to stay focused on
working and shopping patterns and sustainability needs.
fundamental real estate drivers – in particular the mismatch between
2
REGIONAL TRENDS FIGURE 2 – TRENDS IN THE GLOBAL MARKET IN 2013 FIGURE 3 – CROSS BORDER INVESTMENT BY REGION (2013)
All regions saw a positive trend over 2013, but developments within Change in Investment (%pa) Prime Yield Change (bp) Prime ERV Growth (%pa)
each became more diverse. Asia for example led the way for volumes
35% 0 5%
thanks to growth in China as well as Japan and Australia, but this had to North America
5
offset declines in Taiwan, India, South Korea, Hong Kong and Thailand. 30%
4% APAC
Interestingly, in EMEA, while trends were again diverse, the upturn was 25% 10
broader than in recent years, with the UK and Germany still driving the 15 Latin America
20% 3%
majority of regional growth but Russia, Italy, Spain, the Netherlands 20
and Belgium all posting marked increases as did UAE, Israel and South 15% EMEA
25 2%
Africa in the Middle East and Africa sub-region. At the same time, 10%
markets such as France, Sweden and Poland did little more than keep 30
1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
5%
pace with 2012 while Norway, Switzerland and Denmark all fell back. 35
Investment share in 2013
Tokyo – Japan 0% 40 0%
Americas EMEA APAC Americas Europe APAC Americas Europe APAC
Domestic Regional Global
Source: Cushman & Wakefield, RCA, KTI and Property Data Note rent and yield excluding multifamily Source: Cushman & Wakefield, RCA, KTI and Property Data
The Americas meanwhile failed to be the driver behind global In all regions cross border investors grew in significance and rose
growth for the first time since 2009. However, the region still by 24.3% over the year versus a 22.3% increase in domestic demand,
produced a very strong outturn led by the USA but with a significant delivering a slightly increased market share of 17.6%. A significant
upturn in Mexico and a stable showing from Canada. By contrast, shift in the nature of cross border players is taking place, however,
Brazil saw a decline in volumes as did a number of smaller markets with global as opposed to regional investors coming to the fore.
such as Argentina. Regional investment rose 13% while global investment was up 36%,
driven particularly by investment into Europe.
Value trends were similarly diverse although most areas saw prime
yields stabilise and fall by the year-end, with the Americas leading The main source of international capital is the Asia Pacific region,
overall and signs of pressure spreading from tier 1 to tier 2 markets accounting for nearly 40% of all non-domestic spending. However,
as tight supply and an attractive yield gap enticed buyers. the majority of this is invested within the Asian region, and looking at
global rather than regional spending, it is North American investors
Rents meanwhile were largely subdued, increasing by
who very much drove the market, investing USD43.8 bn, 43% of the
just 2.5% globally, their slowest pace since 2009. Asia was the
total spent outside an investor’s home region.
lead region thanks to the buoyancy of office markets such as
Jakarta, Taipei and Manila. Retail was the most dynamic sector Nevertheless, the fastest growing source of global capital is no longer
globally, with rents ahead by 3.4%, led by Europe but with all North America – Asian investors increased their spending outside
regions posting 3% plus gains as retailers focused on global their region by 88% while Middle Eastern Investors beat that,
expansion in gateway markets. increasing spending by 96%. By contrast, North American investment
outside the Americas rose 23%, and European investment outside the
region was virtually flat.
Momentum building as confidence returns
"The real estate market ended 2013 on a high, supported by greater confidence, rising liquidity and the
fact that momentum is building further this year. Indeed, there are signs of a firmer occupier market as
well as greater investment demand and new sources of debt set to drive investment activity, all of which
should push property pricing higher."
3
FIGURE 4 – SOURCES OF INTERNATIONAL CAPITAL

At the same time, changing regulations continue to drive change Change – not growth – is set to drive medium
in the market, with Australian pension allocations increasing and
Taiwanese insurers to be freed to invest overseas. Chinese insurers
term demand and performance
90
have already been deregulated to allow them to invest directly in "Firmer occupier interest is emerging, but simple
80
foreign real estate, and major players such as Fosun International expansion is not the main driver of this; rather,
Annual volume 2013 (USD bn)
70
and PingAn have made their presence felt in gateway markets such it is a fundamental change in the property
60 as London and New York. More is to come as smaller institutions
50 follow their lead. At the same time, other Chinese players are also that businesses want. In all sectors, occupiers are
40 looking further afield, with Gingko Tree perhaps the most travelled, reacting to new ways of working and shopping, to
30
looking in regional UK, Belgium, Germany and Poland in Europe for new technology and to factors such as sustainability
example. However while Chinese investors put USD14.5 bn into the
20 global market in 2013, they will still struggle to be dominant overall
and a need for real estate to help retain talent.
10 with other Asian funds also increasing, led by Singaporean, South Furthermore, there has been a move toward
0 Korean and Japanese funds, and of course the current dominant more intense uses of space, resulting in a significant
Asia Europe Americas MEA region – North America – also set to invest more globally. reduction in the area per worker. As a result,
Global Regional more than ever investors need to focus on what the
Source: Cushman & Wakefield, RCA
occupier wants as well as what they want to avoid."
American players increased their regional spending – up by London – England
44% – largely due to stronger Canadian investment into the USA.
European investment within their own region actually fell, partly
due to a greater focus domestically but also due to strong
competition from global players.
Pension and Sovereign Wealth Funds (SWFs) remain more focused
on Europe than other regions, with 59% of 2013 commercial
investment (excluding land and multifamily) heading towards EMEA
followed by 28% for the Americas and 13% for Asia. Both groups are
seeking offices, averaging 57% of investment, although pension funds
have a higher allocation towards retail (33%) while SWFs are
frequently interested in the hospitality sector (29%).
Country targets were relatively similar for the two with the US
and the UK dominating, as they do for most investor types. Other
countries attracting the lion’s share of pension fund investment are
Germany, Canada and Australia, with each clearly having a strong
domestic pension fund market underpinning this.
Among Sovereign Wealth Funds, France, Italy and the UAE were
top five targets in 2013 while for insurance and private equity funds,
Germany, France and China rounded out the top five. However
while many of these global funds are set on core countries and
gateway cities, others are increasingly ready to look towards
smaller cities and second tier countries.
4
INVESTMENT TARGETS Warsaw – Poland
By sector, development sites led the way in 2013 with a 31% increase
and a 39% market share. This was driven by Asia where land accounted
for 76% of trading last year versus just 4.3% in EMEA and 4.2% in the
Americas. Away from land, offices remain the largest investment
market, with a global market share of 23% and 20% growth in 2013,
which was strongest in Asia but robust in all markets. Retail meanwhile
had a 14% global market share after seeing relatively weak growth of
10% in 2013, with the Americas and EMEA showing stronger growth
but Asian retail volumes declining by nearly 14%, giving it a market share
of just 6% versus 19% in the Americas and 23% in EMEA.
FIGURE 5 – SECTOR SHARE OF GLOBAL TRADING
50%
45%
40%
% of total new investment
35%
30%
25%
20%
15%
10%
5%
0%
Offices Retail Industrial Multifamily Hospitality Land
2008 2009 2010 2011 2012 2013

Source: Cushman & Wakefield, RCA, KTI and Property Data
business and tourist activity, stronger debt availability and high demand, Demand broadening to new areas and sectors
2014 looks likely to beat this mark with gateway hospitality markets
Globally multifamily property is just behind retail, with a 13% market remaining in focus but higher prices likely to lead more investors to
"While core markets remain in high demand, a search
share and growth of 20% last year. The Americas is the biggest broaden their interest towards more secondary assets and markets. for stock, for yield and for performance has rapidly
market, accounting for 69% of all activity, but EMEA saw stronger
Core markets largely remain in high demand, with the top countries
led investors to look further afield, with selected
growth last year of 33% versus 18% in the Americas, and the sector
for investment little changed from 2012, with just India, Brazil and emerging Asian markets, second tier US cities and
has now increased to 15% of all EMEA trading. By contrast Asia
Pacific volumes fell 2.2% and multifamily had just a 1.6% share. Taiwan moving down as Mexico, Spain and Italy rose up into the top Southern Europe back in favour in 2013, with this
20. Seven of the top 20 are now in Asia, compared with ten in Europe
Industrial had a 7.4% global market share, with the Americas the largest
recovery set to deepen this year."
and three in the Americas. Meanwhile, the strongest growth at a
market (12.6%) followed by EMEA (10%) but European growth adding country level was in core markets albeit with a range of emerging
more to the global total than other areas over 2013. Activity in the countries such as Mexico, Russia, Turkey, Vietnam and Malaysia
hospitality sector surged by 24% last year but at USD54.1 bn it remains posting strong increases. China remained the largest global
the smallest investment sector, accounting for 4.6% of all activity in investment market thanks to further growth in land sales which
2013, led by EMEA and the Americas. With rising confidence, increased served to increase its lead over the USA.
5

At a city level, 15 of the top 20 targets were unchanged on 2012 and
FIGURE 6 – TOP 20 INVESTMENT TARGETS FIGURE 7 – TOP 20 CITY INVESTMENT TARGETS
the level of concentration of investment was at similar levels, with
(excluding development)
62.6% of all investment targeted at the largest 50 cities. New York
USD bn pa remained the number one target, attracting USD55 bn into real USD bn pa
0 50 100 150 200 250 300 350 400 450 estate, a 22% increase on 2012. London closed the gap in second 0 10 20 30 40 50 60
place however, with a 38% increase; while Shanghai, Tokyo and
China Beijing rounded out the top five as Los Angeles and Hong Kong moved New York
down to make way for the two mainland Chinese giants. Among
USA London
cross border global investors, London is very much top, with New
UK
York second, Paris third, Sydney fourth and Tokyo fifth. By sector, Shanghai
New York is the top global market for retail, multifamily and hotels,
Germany while London is first for offices and Los Angeles for industrial. Tokyo
Japan Beijing
A rapid but front-loaded recovery is now underway
Australia
"Recovery is taking place more rapidly than expected, Los Angeles
Canada and speed is likely to remain a feature of the market Hong Kong
Hong Kong
as much in how quickly pricing adjusts as how demand Hangzhou
spreads out. However, while occupier markets are
France
firmer, supply varies considerably globally. What is San Francisco
Singapore more, the investment recovery is running ahead of the Chongqing
Sweden
overall tenant market – albeit to differing degrees – Washington
and thus the profile of the recovery will be front-
Russia
loaded, with strong short term gains followed Singapore
South Korea by slower growth as occupier markets catch up." Paris
Netherlands Nanjing
New York – USA
Italy Chicago
Malaysia Suzhou
Spain Houston
Poland Dallas
Norway Berlin
Mexico Sydney
2012 2013 2012 2013

Source: Cushman & Wakefield, RCA Source: Cushman & Wakefield, RCA
6
ASIA PACIFIC result while Australia was boosted by foreign buying demand, Occupier sentiment has been mixed but somewhat lower as
notably from China, as well as by stronger domestic demand. economic trends have been assimilated. A lot of businesses are wary
Asia Pacific saw the fastest growth in investment volumes of any
of taking on more risk with a range of factors to preoccupy them
region in 2013, with a 25% increase delivering a year end volume of In Hong Kong and Singapore demand slowed as calming measures
from environmental disaster in the Philippines, to upcoming elections,
USD568.6 bn, 48% of the global market. It is notable, however, that a took effect, although Singapore looks to be ahead of Hong Kong
political turmoil in Thailand, weak economic fundamentals in India
very significant share of this related to land sales in China, which soared in terms of stabilising from this. At a city level, Tokyo was again
and Indonesia and slowing growth and credit constraints in China.
37% to USD397 bn, 34% of the global total. Taking Chinese land sales dominant although Sydney was faster growing. Hong Kong
out of the regional total, volumes grew by just 5% and the market maintained its second place despite a fall in volumes while Osaka, Such caution is also not surprising given the volatile nature of the
slowed considerably in the final quarter as the pace of land bank Nanjing and Shenzhen were the fastest growing larger markets. global recovery and the slower trajectory of growth that investors
accumulation slowed due to tighter liquidity and the higher costs of are growing accustomed to in Asia. However, while this creates social
Despite slower demand, development has remained high in parts of
holding sites. Land sales over the year were nonetheless at record and economic uncertainties, it also promises growth in some areas,
the region such as non-core office areas of Shanghai and Beijing as
levels, with Shanghai and Beijing particularly strong as well as other notably for those that successfully reform but also in areas exposed
well as tier 2 Chinese cities such as Chengdu, Tainjin and Chongqing
tier 1 cities where underlying growth is judged to be secure such as to the change in economic balance from investment to consumption
where activity has been boosted by some developers turning away
Shenzhen and Guangzhou. This planned development will also fuel a and in areas offering productivity gains such as modern logistics.
from the residential sector. Elsewhere, Kuala Lumpur, Jakarta and
pick-up in construction that will help drive economic growth in 2014/15.
key Indian cities have active development pipelines.
Demand for prime standing investments picked up in emerging
Hong Kong
markets in the final quarter, led by China for retail and offices,
while industrial had a strong year overall with core markets such
as Japan and Singapore performing well and looking set to remain
in strong demand.
Vietnam and Malaysia led the way for global emerging markets,
bettered only by Mexico, with volumes up 58% and 37% respectively.
With growth of 36% and 23%, Japan and Australia were also up
strongly but core markets still grew by just 6% versus a 33% increase
in developing markets. Japan saw significant yield compression as a
FIGURE 8 – APAC PROPERTY INVESTMENT VOLUMES
200 7.0%
180 6.9%
160 6.8%
140 6.7%
120 6.6%
100 6.5%
80 6.4%
60 6.3%
40 6.2%
20 6.1%
0 6.0%
Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13
Investment Volume Yield (ex multifamily)

Source: Cushman & Wakefield and RCA
7

EMEA In response to rising demand, pricing has tightened, led by prime but Corporate confidence is improving meanwhile and this is slowly being
with good quality secondary also coming under pressure. This has reflected in tenant demand and a shift in aims from just cost control
A strong final quarter drove volumes in EMEA to a six year high of helped to bring forward some profit taking – for example, listed to improving business effectiveness.
USD246.3 bn in 2013, 23% up on the previous year. The story of the companies making sales to free up capital in order to redeploy high up
year was the bounce in activity in peripheral markets, led by Southern In general occupiers are still focused on Grade A space but with
the risk curve. Banks have also been a greater source of product via
Europe which rose by 107%, but demand in the core remains high, supply limited, compromises are needing to be made and rental
asset and loan sales and this is set to accelerate as the EU’s banking
supported by a greater availability of debt, and the big three of France, pressures are to set to mount.
asset quality test draws closer and ahead of the ECB taking over
Germany and the UK saw a 24% rise in volumes, thus maintaining their supervisory responsibility in September. In the retail sector, improving consumer confidence is boosting
market share of 66%. At a city level London was the fastest growing top markets but the importance of e-tailing is keeping a sharp focus on
five European market while Berlin was the fastest growing in the top Europe’s economic recovery is in its early days and faces headwinds
the best units and locations as well as new ways of retailing. Core
ten, helped by rapid growth in apartment sales. Milan was also up from deleveraging and possible deflation as well as the threat to export
logistics space is also benefitting from the growth of e-tailing and
strongly as were Madrid, Barcelona, Dubai, Brussels and Dublin. demand and the exposure of the banking sector to emerging markets.
with quality modern space limited in core markets, rents are under
However the ECB does have leeway to act and to date, export growth,
Opportunistic investors have made their presence felt and foreign pressure, particularly in transport hubs, be they international such
restocking and a slow stirring in consumer demand have been enough
demand in general has been a key part of the renaissance of European as Antwerp and Hamburg or domestic in larger countries.
to stabilise unemployment – potentially the biggest threat to the region
markets. While cross border investment overall was stable at around in terms of economic, political and social pressures.
42% of all trading, non-European flows were up by a strong 49%,
accounting for 27% of the total. North American capital was again Paris – France
substantial, but Middle Eastern and Asia Pacific flows are increasing at a
much faster rate, doubling and trebling respectively according to RCA.
Overall demand is still rising as institutional allocations are raised and
foreign interest increases. Greater debt availability and lower pricing
is adding to buying power and while still restricted to prime in many
areas, risk appetite among lenders is improving, leading to a slow
broadening in availability. Alongside an appetite to invest quickly, this
has helped to support a stronger level of interest in portfolio sales.
FIGURE 9 – EMEA PROPERTY INVESTMENT VOLUMES
120 7.6%
100 7.4%
7.2%
80
7.0%
60
6.8%
40
6.4%
20
6.2%
0 6.0%
Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13

8
THE AMERICAS: LATIN AMERICA tier 2 cities, there has been no let up in interest in core product,
FIGURE 10 – LATIN AMERICA
with prices pushed higher as competition remains strong.
Investment activity in Latin America fell 13% in 2013 to USD5.7 bn after PROPERTY INVESTMENT VOLUMES
a weak second half. The fall was due to a decline in global investment, The macro picture for the region has been mixed, although on the
with domestic investment increasing 38% but foreign investment falling back of more aggressive reforms strengthening growth potential and 6 11.1%
by 61% to just 21% of the total, its lowest market share for three years. stability, Mexico has seen its credit rating upgraded, joining Chile as the

10.9%
5
only other Latin American country with an A-grade rating. By contrast,

Intra-regional trading held up as North American and Chilean 10.7%
Brazil has received a harder review from rating agencies and has
funds continued to show demand and a number of larger deals 4
something to prove at this year’s soccer World Cup beyond just football. 10.5%
demonstrated investor faith in the long term potential of the market.
3 10.3%
However some other global players have taken a shorter term Occupier markets have been volatile, with conditions healthiest in
10.1%
perspective and turned towards different global markets where risks the residential sector but subdued demand and rising availability 2
are deemed to be lower, such as recovering markets in Europe. At the typical in many commercial markets. Office pipelines are high in most 9.9%
same time, a number of major local players have also diverted some major cities for example, although some, led by Mexico City and 1
9.7%
investment outside the region as they increase their global profile. Santiago, are now reporting a return of better occupier confidence. 0 9.5%
Industrial markets are suffering from oversupply as development Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13
With Brazil seeing investment volumes fall 75% last year, Mexico
runs ahead of demand, while retail markets are more mixed, with
stood out as a growth market for the region over the period with a
ongoing demand in prime areas but weaker consumer confidence
surge in activity of 188% driven by new REIT vehicles and strong Investment Volume Yield (ex multifamily)
and higher supply impacting on the wider market.
growth in the industrial sector. While demand has increased in some Source: Cushman & Wakefield and RCA
Buenos Aires – Argentina
9

THE AMERICAS: NORTH AMERICA The office sector took 29.6% of the market in 2013, on a par with MACRO POSITION
the previous year, with better signs of health in the occupational
North America saw its best quarter since 2007 in Q4 2013, and Macro conditions have cleared materially over the past 12-18
market supporting investor interest as tech and energy companies
while growth was not quite as strong as in Asia and Europe for the months but as ever a wide range of risks still exist, from geopolitical
were again the main driver of demand. In the retail sector, markets
year, there was still a 19% rise in overall volumes to USD359 bn, to environmental, to economic and financial. Some of the key issues
are still heavily polarised, with the top high streets and malls
30% of the global market. The US itself has driven the increase, with set to shape investment strategy include a possible upswing in
significantly outperforming and prime yields compressing as a result.
demand in Canada strong but activity levels pegging with 2012 as the consumer spending, led by the USA, the potential for the US dollar
Meanwhile, hotels were the strongest area of volume growth while
market was held back by high prices and stock shortages. to strengthen and a likely increase in M&A activity. In terms of
demand in the multifamily sector eased back a little as pricing and
geopolitical factors, disputes in the Middle East and North Africa as
Strong capital flows into the sector in the USA were supported by investment approached pre-crisis highs.
well as in the Ukraine and in the East and South China seas pose a
both equity and debt markets, with more competition emerging to
The Canadian market continued its strong performance with real risk to stability. For the short term outlook however, perhaps
both buy and to lend, supported by an improving economy and the
volumes and pricing near historical highs, albeit with just a 2% the two most pressing issues revolve around the end of quantitative
flow through to real estate market fundamentals. The senior debt
increase recorded in activity overall. There were, in fact, distinct easing and the health of emerging markets.
market has been strong for some time, and the mezzanine debt
trends during the year, with volumes falling 37% between the first
market is also highly liquid where the LTV ratio is conservative. In terms of QE, we face a long term correction which is starting
and second halves while in the USA volumes rose 38% over the same
A further improvement in finance market conditions is likely this with a slowdown in the rate of QE rather than an absolute reverse.
period. The first half was characterised by strong demand from
year as the CMBS market expands. Nonetheless, while central banks are likely to remain largely
REITs and other public RE companies with ready access to equity and
supportive, the tightening risk will bring more volatility as investors
FIGURE 11 – NORTH AMERICA debt capital. With the increase in bond yields and interest rates in
react to month by month news flows. For real estate there is likely
PROPERTY INVESTMENT VOLUMES the summer, however, REIT yields increased and these buyers
to be only a limited short term impact on prime pricing due to the
became less active. Demand shifted to pension funds and pooled
level of demand in the market, the scale of the yield gap favouring
institutional funds whom will remain keen buyers in 2014 as
180 8.0% property and the prospect of a steady return of rental growth.
institutional allocations once more increase.
Indeed, an end to QE will be a signal of a normalising economy,
160
Austin – USA and with real estate a play on economic recovery, quality property
140 7.5%
120
stands to gain.
100 In emerging markets meanwhile, growth is slowing, but this is as one
7.0%
80 would expect as economies such as China and Brazil become larger
60 and are unable to support historic rates of growth. However they
40 6.5% are still growing above expected global averages according to most
20
forecasters. What is more, while some countries face difficulties,
there are opportunities in others in Africa and the Middle East, for
0 6.0%
Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 example, and in countries such as Peru, Columbia, Chile and the
Philippines which offer transparency, good infrastructure and
educated workforces.
Source: Cushman & Wakefield and RCA The need but also the pace of reform is actually picking up in most
areas of the world, largely in reaction to the financial crisis and need
Demand is easily outstripping supply in gateway markets, but more
for banking reform but also in response to a need to boost
stock is likely to emerge as some investors take profits and funds
competitiveness and generate growth. Unsurprisingly, it has been
and REITs continue to realign portfolios. Increased interest has also
eurozone countries leading the way, focusing on fiscal stabilisation
emerged in previously overlooked markets as risk appetites have
and consolidation but also social security and labour reform. In other
grown, and while New York, Los Angeles and Washington DC have
areas of Europe reform is underway but typically at a slower pace.
remained dominant, others such as Orlando, Las Vegas and Hawaii
A number of Central & Eastern European markets have also been
have seen the fastest growth in the past year.
active on reform – seeking to stay one step ahead of Western
10
Europe and competing global emerging markets. In contrast,

TABLE 1: A MACRO ASSESSMENT OF MARKETS
reform in many other emerging markets has been less urgently
pursued, perhaps because many were less impacted by the financial WEALTH GDP PER CAPITA DYNAMISM GDP OPEN FOR BUSINESS ECONOMIC STRUCTURE OPEN TO REFORM THE GLOBAL
GROWTH 2013-18 BALANCE – 2014 INNOVATION INDEX 2013
crisis, and it is only now that reform plans are being reinvigorated.
1 Luxembourg Mongolia Singapore Sweden Greece Switzerland
Raising employment is a key reform aim in more and more markets,
2 Norway Libya Hong Kong Switzerland Latvia Sweden
perhaps most pressingly in the eurozone. In areas such as South
Korea and Japan there has been more focus on raising labour 3 Qatar Mozambique New Zealand Denmark Malaysia United Kingdom
productivity while in the US, education and health reforms 4 Switzerland Sierra Leone United States Luxembourg Portugal Netherlands
alongside tax structures are the priority. 5 Australia Cote d'Ivoire Denmark Norway Spain USA
In the BRICs and other emerging markets such as Turkey and 6 Kuwait Zambia Malaysia United States Chile Finland
Mexico, education, infrastructure and barriers to competition have 7 Denmark Cambodia South Korea Austria China Hong Kong
been in focus alongside measures to reduce the black economy,
8 Sweden China Norway Belgium Colombia Singapore
while in China, alongside a focus on raising consumption, financial
sector reform is also planned. 9 Singapore Angola United Kingdom Canada Czech Republic Denmark
10 United States Malawi Australia Finland Denmark Ireland
Among emerging or mature markets, investors need to focus on
countries that have economic stability and a willingness to reform. 11 Canada Uzbekistan Finland Germany Estonia Canada
Table 1 highlights the top 30 countries for a range of indicators 12 Austria Myanmar Iceland Netherlands Ireland Luxembourg
such as wealth and growth, innovation and business stability and 13 Netherlands Sri Lanka Sweden Hong Kong Japan Iceland
an assessment of reform credentials, a qualitative view drawing
14 Ireland Kazakhstan Ireland Saudi Arabia Kazakhstan Israel
on World Bank and OECD findings.
15 Finland Tanzania Taiwan Singapore Lithuania Germany
The top markets that appear in five out of six of these top rankings are
16 Belgium Vietnam Lithuania Taiwan Mexico Norway
Denmark, Singapore, the USA and the Netherlands. They are followed
by a host of core countries such as Norway, Switzerland, Sweden, the 17 Germany Uganda Thailand France Netherlands New Zealand
UK, the USA, Canada, Germany, Japan and Hong Kong that appear in 18 Iceland Ethiopia Canada South Korea Philippines South Korea
four out of five listings. Some smaller European markets such as Ireland, 19 UAE Qatar Mauritius Oman Poland Australia
Austria and New Zealand also feature in four out of six rankings and are
20 France Bangladesh Germany Qatar Singapore France
worthy of more investor interest as a result.
21 New Zealand India Estonia Chile Slovak Republic Belgium
In the next tier we find a number of European markets restructuring
22 Ukraine Panama UAE China Sri Lanka Japan
after the eurozone crisis, with Spain and Portugal leading, Greece
moving up quickly and Italy also moving forward. Other mature 23 Japan Kenya Latvia Israel Taiwan Austria
markets such as Belgium, Taiwan, South Korea and Australia are 24 Hong Kong Iraq Macedonia Kuwait India Malta
in this group of promising targets while emerging markets led 25 Israel Indonesia Saudi Arabia Estonia Egypt Estonia
by China, then Malaysia, Chile, Poland, Czech Republic, Mexico,
26 Italy Moldova Japan Malaysia Ukraine Spain
Bulgaria and Peru also feature. A select number of Middle Eastern
markets fair relatively well – led by Qatar, UAE and Israel – while 27 Spain Nigeria Netherlands Slovakia UK Cyprus
in Africa, considerable concerns remain over stability but some 28 Oman Ghana Switzerland Algeria USA Czech Republic
markets are much improved, such as Botswana, Ghana and 29 Bahrain Philippines Austria Malta Russia Italy
Angola as well as South Africa.
30 Cyprus Cameroon Portugal New Zealand Italy Slovenia
Source: Cushman & Wakefield, World Bank, Economist Intelligence Unit, Oxford Economics
11

OUTLOOK underlying corporate and economic news point to Japan staying at the With austerity easing and economic growth slow but generally up,
forefront of growth in the occupier market alongside China, although better news will continue to spread in occupier markets. However
A more positive but realistic appraisal of the macro environment
Shanghai and Beijing may both see slower demand due to high costs supply will be a big factor for occupiers as well as investors, with a lack
should support further robust demand for property as an investment
and limited availability. Taipei meanwhile should benefit from the of development impacting on choice and leading to higher pricing.
and this will be underpinned by the availability of debt and the supply
Cross-Strait Trade in Services Agreement while other major markets Core assets will therefore benefit from rising rents while some second
of available product from profit takers, deleveraging banks, investors
will see a gradual recovery, led by those which can offer a cost tier assets stand to benefit from falling yields but also from falling
and developers moving up the risk curve as well as businesses and
arbitrage, including markets in India given the fall in the Rupee. vacancy due to an overflow of demand from the core.
the public sector raising capital. We are forecasting a 13% increase
in investment globally to USD1.33 tn in 2014, with the USA and Turning to Europe, volumes are forecast to rise 12–13% with the However, this improved picture is at least partially priced in and with
Western Europe driving the increase. At the same time yield recovery deepening and an increasingly optimistic view forming risk free yields rising, this will put pressure on yields in some areas.
pressures will push capital values up, with the yield gap between for activity, with a sharpening in prices helping to bring stock to Nonetheless, the gradual improvement in the economy will increase
prime and good secondary closing as investors reappraise and the market. Geographically, demand is still broadening, with the recovery momentum in major markets and hence rental growth,
re-price risk. Rising interest rates will put a ceiling on how far yields opportunistic players leading the way into what were previously improving financial conditions and the weight of money will counteract
can move but the sector has a cushion in high yield premiums and overlooked areas, typically seeking quality assets in large cities. the effect of rising interest rates, resulting in mild yield compression for
pricing will also benefit from a slow return of occupier demand. prime and somewhat stronger compression for good quality secondary.
A normalising economy should spur more interest in real assets such
as property and with institutional allocations increasing, particularly in
Asia, private buyer demand growing, a larger quoted sector developing TABLE 2 – INVESTMENT VOLUMES (INCLUDING LAND AND MULTIFAMILY, ASSETS OVER USD5 MN)
and international interest up as investment objectives become more
VOLUMES IN 2013 2014 OUTLOOK
global, the outlook is clearly for real estate demand to strengthen. USD bn Change on 2012 % 2007/8 peak USD bn Change on 2013
A stronger relative increase in capital flows between regions is also Europe – West 216.9 +21.1% 61% 247.3 14%
likely, be that North Americans looking for risk arbitrage, Asians Europe – Central & East 24.0 +37.6% 88% 24.9 4.0%
looking for diversification or Europeans looking for growth. Middle East & Africa 5.5 +50.0% 35% 5.9 7.5%
Latin America 5.7 -12.9% 38% 5.9 5.0%
In terms of regional trends, Asia Pacific markets are forecast to see North America 359.0 +18.9% 63% 430.8 20%
a robust performance in 2014 against the backdrop on an improving Developing Asia 432.5 +33.1% 327% 471.4 9.0%
global economy and rising domestic demand. IPOs and capital raisings Mature Asia Pacific 136.2 +6.0% 87% 141.6 4.0%
may be delayed by recent global volatility but at the same time, GLOBAL 1,179.6 +22.6% 95% 1,327.8 13%
uncertainty may divert demand from equities to real estate. Indeed,
with insurance companies of growing importance across the region Source: Cushman & Wakefield, RCA
and ready to take on more risk as well as increased allocations from

private players and foreign investors, a further steady rise in activity
TABLE 3 – VALUE CHANGES IN THE GLOBAL MARKET
of 7–8% is forecast.
CHANGE IN YIELDS (BP) 2013/14 CHANGE IN FACE RENTS
More capital will flow towards higher risk sectors and emerging
2013 Relative to 2012 Relative to last peak 2014 relative to 2013 Relative to 2012 Relative to 2013
markets as core markets offer stabilised lower returns. Those with
Europe – West -10 91 -20 2.3% 2.6%
higher return horizons make sales in the core to redeploy capital to Europe – Central & East -15 32 -10 0.4% 1.8%
higher growth areas. The yield gap favouring property over bonds Middle East -37 38 -25 1.4% 3.5%
remains attractive and while the slow ending of QE is likely to push Latin America -45 8 -20 0.9% 3.0%
yields up in some markets, with others such as Japan maintaining QE, North America -17 -7 -10 1.2% 3.3%
trends will become more diverse within the region. Developing Asia -1 -77 +5 5.2% 3.6%
Mature Asia Pacific -17 -30 -5 3.8% 2.1%
A number of export orientated markets will benefit as world growth GLOBAL -18 1 -15 2.5% 2.9%
picks up and Japan remains a particular bright spot. While tax increases
will impact this year and the need for further reform is a clear, Source: Cushman & Wakefield, RCA. Note: Middle East rental growth and yields for offices only. Other regions are all-sector excluding multifamily. Rental levels referred to are face rents. RCA data relates to all deals over USD5 mn, as of 5th Feb 2014
12
North American volumes are forecast to rise 20% this year with the well-leased prime assets while secondary and tertiary assets face INVESTMENT STRATEGY
US remaining the engine of global growth amid signs of a stronger some headwinds in terms of liquidity.
economic and real estate recovery. Job growth is expected to be Stronger global economic conditions and liquidity will underpin a
Investment in Latin America is expected to show cautious growth further marked improvement in activity in the property market this
stronger, corporate earnings are growing and signs are positive for
in the short term as the region stabilises. Latin America faces a year, with investors seeking secure income producing assets but also
increased consumer and business spending.
mixed macro backdrop, albeit with conditions certainly improving assets that may benefit in an economic upturn. As a result, more will
The gap between the occupational and investment market is less than as export markets pick up and past reforms and stimulus measures be ready to take on risk whether in waiting for growth or in actively
in Europe and thus the firming economy will offer more immediate impact. At the same time, however, public protests are a concern managing or repositioning assets for future demand. At the same
support to the property sector. Occupancy gains should flow quickly for foreign investors and a warning of imbalances in society. Trends time, tapering and a return of normality in a growth constrained
with many markets still below replacement costs. in the region have in reality become more diverse. Occupier and world means investors need to get their diversification policy right,
investor demand has held up better than many anticipated and cities in many cases looking further afield to do this.
Upward pressure on interest rates will translate into pressure on
such as Mexico City and São Paolo have performed well in terms of
yields, but high demand and signs of rental growth will be sufficient to It may therefore be time to change or adjust strategy for those that
investment activity. Investment has tended to become more focused,
hold yields, steady in gateway markets, with demand for institutional have not done so already, with a new strategy attuned to differing
with retail generally up and Mexico gaining over South America, and
assets set to remain well above demand in the top six markets. trends market by market, to seeking and pricing risk correctly, to
while the long term appeal of the market is not in doubt, in the short
Canada appears set for robust, albeit reduced, investment activity in term the efficacy of government decision making and market stability finding differing opportunities up and down the capital stack and
2014 as allocations to domestic pension funds grow and institutional will remain under the microscope. above all to the need to look closely at what the occupier wants.
demand remains unspent. REIT purchasing activity is beginning When it comes to the occupier, two things are important: finding
A firmer economy in the region is expected to support renewed
to renew as capital markets remain available for equity for new talent and finding space that offers the effectiveness and efficiency
occupier demand which will offset higher availability and produce
acquisitions. Foreign investment has played a relatively minor role the business needs e.g. through encouraging collaboration, creativity
modest rental growth in some areas. Retail rents may remain under
in the past few years, but interest in Canada remains high and a and productivity and helping to attract staff via image and quality.
pressure in much of the region until consumer confidence improves
lower-priced dollar may renew appetite from this sector. The large As ever this can point to bigger cities that offer more but it also points
and inflation fears are subdued although Mexico may outperform as
Canadian pension funds are expected to continue their global to better cities that have the right cost base, effective transportation
growing wealth and a larger middle class generate more retailer
investment while focusing largely on major developments in their and can support a higher quality of life for employees.
demand, particularly in tier 2 cities where modern development has
home country. Pricing is expected to remain very strong for
been less concentrated. Strategy towards asset types also needs to adjust meanwhile, with
Amsterdam – The Netherlands
attitudes towards other real assets changing and generally favourably
so, notably towards energy and infrastructure but also areas such as
agriculture and woodlands as well as multi-family residential, leisure,
health and other sub-sectors. Each can offer useful diversification
and performance merits to enhance a portfolio.
Looking by region, Europe looks set to benefit from the start of US
tapering and ongoing emerging market concerns. Core markets look
attractive due to the balance of investor demand as well as improving
occupier interest against a backdrop of a typically restricted supply
of good quality assets thanks to restrained development and an
ageing stock, frequently with inadequate capital investment over
recent years. Opportunities to take more risk are also increasing,
either to develop or reposition assets in core markets, or to look
beyond the core markets to access higher yields.
13

Demand for markets such as the UK, Germany and the Nordics is A positive office supply dynamic can be seen in much of EMEA with In core markets there should be a focus on income growth potential
likely to remain high. At the same time however, higher competition, the UK in particular on course for robust growth. Leasing activity is including asset management and refurbishment, as a hedge against
stock shortages and an ongoing acceptance of risk will focus more expected to rise modestly, led by London, Dublin, Stockholm and top the impact of higher interest rates while attractive development
interest on other markets, both second tier cities in core countries and German cities. Paris may underperform in the short term but will opportunities will be seen in gateway and tech markets. Warehousing
second tier countries. Among what were distressed markets, Ireland offer opportunities as infrastructure works are progressed and as its markets also offer potential, either for development on major hubs or
has clearly passed its low point for prime space, while values in Spain strengths as a city overcome national weaknesses. Other core acquisitions in regional markets serving strong cities as online retailing
appear to have reached their floor and Italy and Portugal are not far markets should also come more into favour, such as Amsterdam continues to exert its impact.
behind – albeit occupational recovery will be gradual as reforms and where stock levels are dropping and Brussels with a higher global
In Canada, considerable new office supply is under construction in
deleveraging continue. Central and Eastern Europe could also pick up profile, long leases and low volatility.
major downtown markets for delivery in the next three years which
more rapidly than expected given the value offered by modern
In others sectors, key logistics hubs have strong investment potential, will place upward pressure on vacancy, although well-leased CBD
property in larger cities in the stronger countries across the region,
benefiting from trends such as e-commerce. Retail is under a lot of assets will continue to have very strong liquidity. Although rare,
led by Poland and Czech Republic from a risk minimisation viewpoint.
pressure and consolidation of weaker stores will continue but regional shopping centre offerings will continue to attract peak pricing
For higher risk takers, current political concerns aside, Russia and physical retail space is clearly still key in a multichannel world even if and the apartment sector, with its persistently low vacancy, will see
Moscow specifically is seeing stronger growth while Turkey is more innovation is needed and rental growth will be focused on the ongoing robust demand from private and institutional investors. The
somewhat further back in the cycle. Africa meanwhile is attracting more best locations. industrial sector is seeing a steady improvement in leasing fundamentals
if still selective interest as infrastructure and resource development, with investors largely focused on modern product.
Turning to the Americas, in 2011/12 the focus of the US market
urbanisation, growth of the middle class and increased political stability
was safety and quality and in 2013 that moved to yield and despite In Latin America, stronger global economic growth will bring
raise opportunities. The Middle East is of course volatile and still beset
rising bond rates, the market looked towards secondary areas in more stability and a focus on the longer term drivers of wealth and
by problems but stronger centres are expanding again – led by Dubai
pursuit of higher incomes. 2014 is likely to be marked by a further population together with foreign investor and corporate demand to
– and infrastructure development and urbanisation are key areas of long
increase in risk appetite as investors look to get ahead of changing access markets, resources and production. Logistics hubs should be a
term potential as and when political stability starts to build.
trends in areas such as inflation and technology and as fundamentals key area benefitting from this in the shorter term. The largest cities in
Mexico City – Mexico take over from monetary policy as the driving force behind the region will continue to push up the global rankings, led by Mexico
performance and strategy. but also Brazil as the World Cup and Olympics draw closer – but
investors should also be ready to look more widely in the region,
Foreign investor demand is also likely to increase as the US is seen
at new markets such as Colombia and Peru and at second tier cities
to combine safety, liquidity and growth potential, with a focus on
where modern supply is typically more limited.
core assets in gateway cities but with more buyers also ready to
follow domestic capital into secondary markets, prompting a
further fall in yield levels. Investors are well advised to
For investors in general to compete they are going to be forced to find buy the stock, not the market
cheaper sources of capital, and this will include more partnerships "Real estate is a “buy” based on relative pricing, risk
between foreign investors and local partners, a push into the public and prospective growth. However, not all property
markets, new finance vehicles and sources such as crowd funding.
is equal – some countries are more reformed,
With the recovery in the multifamily sector well developed and retail innovative and productive, and some cities are
markets, other than prime city centre space, just starting to stabilise,
hospitality, office and warehouse space may offer the best short term innately more competitive and attractive than others
opportunities. In the office sector, demand looks set to rise further or the countries they sit in. Therefore, markets are
and energy and tech markets such as San Francisco, Boston, Seattle, becoming more idiosyncratic and driven by their own
Denver, Houston and Austin remain favoured for growth, together
with gateway markets led by New York, and LA, with Washington
individual advantages, leading to a more divergent
held back somewhat. global market with real winners and losers."
14
In Asia Pacific, changing growth dynamics and a divergence in

TABLE 4: TARGETS FOR INVESTMENT IN 2014/15
performance should be taken as an opportunity for investors to realign
their investment strategy. Parts of the region may be vulnerable to AMERICAS ASIA EMEA
a shift in yield as capital flows change and liquidity is diverted from Core Offices: US CBD Gateway cities Offices: Sydney, Melbourne, Shanghai, Offices: London, Paris, Stockholm,
emerging markets by an end to QE but at the same time, better (New York, San Francisco and LA), Beijing, Tokyo Munich, Frankfurt, Berlin
economic performance should encourage portfolio investors seeking core Canadian cities (Toronto, Vancouver)
Retail and Hospitality: Hong Kong, Retail: Dominant shopping centres and
medium term growth opportunities. Retail: Core 24 hour gateway cities in Tokyo, Sydney luxury/flagship high streets in core German
USA and Canada cities including Munich, Berlin and Stuttgart
Growth in the logistics market for example is likely to be widespread Residential: Japan
plus Paris, London
Apartments: Multifamily in top US
as consumer demand, trade and market changes impact on leasing cities e.g. New York, Boston, San Francisco, LA
Logistics: Top Australian cities
Logistics: London, Paris, Munich,
patterns. In other sectors a return of growth will not be uniform. Hamburg, Rotterdam, Antwerp
Office markets have been driven by consolidation, but there are now
signs of firming demand in some areas, with growth led by cities such Core-Plus Offices: Core space, growth markets Offices: Singapore, Hong Kong, Seoul Offices: Amsterdam, tier 2 German cities,
(Atlanta, Houston, Dallas, Denver, UK Thames Valley, Prague, Madrid, Warsaw
as Jakarta and Tokyo but others such as Singapore and Seoul also Boston, Seattle)
Retail: Growth markets such as Singapore,
plus development in core cities: London,
bottoming out. Overall, markets such as Bengaluru, Bangkok, Hong Beijing, Shanghai, Chengdu, Jakarta, Kuala
Paris, Stockholm, Frankfurt
Suburban offices in core US and Canada cities Lumpur and Seoul
Kong, Hyderabad, Jakarta, Manila, Seoul, Singapore and Tokyo look
Retail: Retail refurbishment in core cities
likely to lead for rental growth. Logistics; Core assets: South California, Logistics: Tokyo, Singapore, Hong Kong
in northern Europe. Core space in larger
New Jersey, Miami and Seattle, Dallas, Chicago
cities in Italy, Poland and Spain
Retailer confidence remains good, although expansion is somewhat
Core leased assets: Mexico
slower as rising costs are assimilated, but the development of the Logistics: German second tier, Warsaw,
retail market is still spurring change and should be a target for more Prague and Budapest
investment going forward. Bangkok and Jakarta will lead for short term Opportunistic Logistics: market servicing key Brazilian and Offices in emerging growth markets: Offices: Lisbon, Moscow, Istanbul, Milan,
retail growth, with key Chinese cities also steadily gathering pace. Mexican cities Jakarta, Kuala Lumpur, Mumbai and other Barcelona
top Indian cities
Retail and residential development: Retail: Moscow, major cities in Turkey
Santiago, 1st and 2nd tier Brazilian, Mexican Retail: Emerging markets: Hanoi, Kuala and active management/ development in
and Colombian cities Lumpur, Bangkok, New Delhi and other top larger cities
Indian and Chinese cities
FIGURE 12 – GLOBAL PROPERTY Offices: Mexican cities for short term gain Logistics: Development and units
and possibly Lima Logistics: Gateway China Cities: Shanghai, serving large Eastern European cities
INVESTMENT BY REGION
Beijing, Guangdong and India hubs and peripheral western cities: e.g. Oporto,
Under rented class A US office and apartment
Barcelona and Milan
1400 property: South Florida, Dallas, Chicago
Annual investment volumes (USD bn)
1200 Source: Cushman & Wakefield
1000 Areas of reform will open up new opportunities within the region, India should also be in the spotlight as promised reforms move
800
led of late by Japan where the third arrow of reform is awaited but forward to boost growth and as urbanisation, increasing incomes and
quantitative easing is likely to boost property demand and with a labour cost/quality make the high returns on offer look attractive on
600 potential boost to retail and logistics as deflation ends, the market an absolute and risk adjusted basis. Leased core office assets in tier 1
400 should see increased activity. cities are favoured followed by residential investment, while
industrial is likely to grow in potential quite rapidly.
200 China meanwhile is adjusting to lower and more domestically
orientated growth. High quality logistics and shopping centres are
0
2007 2008 2009 2010 2011 2012 2013 2014
likely to benefit from this while more generally sentiment is improving
beyond just the usual top cities with other tier one cities such as
Suzhou, Wuhan, Chengdu and Guangzhou becoming mainstream
APAC EMEA North America Latin America targets for international capital and many tier 2 cities also on the rise.
15
GLOBAL INVESTMENT VOLUMES
EUR MILLIONS – Above USD5 million equivalent, excludes apartments EUR MILLIONS – Above USD5 million equivalent, excludes apartments
COUNTRY 2012 2013 ANNUAL CHANGE 2014 TREND COUNTRY 2012 2013 ANNUAL CHANGE 2014 TREND
Argentina 60 43 -28.8% Luxembourg 542 946 74.5%

Australia 19,561 23,336 19.3% Malaysia 3,031 3,987 31.5%
Austria 820 835 1.8% Mexico 1,004 2,814 180.3%
Bahrain 0 0 n/a Netherlands 3,782 4,877 28.9%
Belgium 2,127 2,520 18.5% New Zealand 1,202 1,436 19.4%
Brazil 3,161 791 -75.0% Norway 6,384 4,929 -22.8%
Bulgaria 43 54 26.0% Oman 37 0 n/a
Canada 16,883 17,403 3.1% Peru 4 0 n/a
Channel Islands 31 42 34.1% Philippines 557 415 -25.4%
Chile 298 318 6.6% Poland 2,807 3,124 11.3%
China 241,862 317,837 31.4% Portugal 108 322 198.1%
Colombia 0 0 n/a Romania 276 461 67.2%
Croatia 47 198 324.4% Russia 5,671 5,657 -0.2%
Czech Republic 546 1,017 86.3% Saudia Arabia 62 67 8.3%
Denmark 2,724 4,867 78.7% Serbia 7 4 -40.7%
Ecuador 0 10 n/a Singapore 12,229 11,806 -3.5%
Estonia 109 135 23.4% Slovakia 17 231 1302.4%
Finland 2,130 2,374 11.5% Slovenia 0 86 n/a
France 14,923 15,080 1.1% South Africa 1,337 1,877 40.4%
Germany 25,430 30,600 20.3% South Korea 6,547 5,484 -16.2%
Greece 100 1,082 982.3% Spain 1,756 2,678 52.5%
Hong Kong 21,048 18,401 -12.6% Sweden 11,742 11,096 -5.5%
Hungary 153 357 133.6% Switzerland 4,800 3,673 -23.5%
India 2,604 1,019 -60.9% Taiwan 7,665 2,584 -66.3%
Indonesia 525 422 -19.7% Thailand 1,090 610 -44.1%
Ireland 533 1,893 255.3% Turkey 1,058 1,384 30.8%
Israel 312 374 19.9% Ukraine 396 482 21.9%
Italy 2,496 4,093 64.0% United Arab Emirates 711 1,373 93.0%
Japan 25,135 33,663 33.9% United Kingdom 41,734 63,816 52.9%
Latvia 0 69 n/a USA 150,780 178,803 18.6%
Lithuania 20 93 364.1% Vietnam 337 529 57.0%
Source: Cushman & Wakefield, Property Data, KTI and RCA

Annual change figures have been calculated based on the total values and not rounded values
16
USD MILLIONS – Above USD5 million, excludes apartments USD MILLIONS – Above USD5 million, excludes apartments
COUNTRY 2012 2013 ANNUAL CHANGE 2014 TREND COUNTRY 2012 2013 ANNUAL CHANGE 2014 TREND
Argentina 77 55 -29.0% Luxembourg 697 1,259 80.7%

Australia 25,169 30,897 22.8% Malaysia 3,873 5,306 37.0%
Austria 1,072 1,129 5.4% Mexico 1,292 3,767 191.7%
Bahrain 0 0 n/a Netherlands 4,924 6,542 32.9%
Belgium 2,774 3,349 20.7% New Zealand 1,585 1,979 24.8%
Brazil 4,064 1,027 -74.7% Norway 8,399 6,547 -22.0%
Bulgaria 56 72 29.1% Oman 46 0 n/a
Canada 21,736 22,861 5.2% Peru 6 0 n/a
Channel Islands 40 58 43.6% Philippines 702 561 -20.0%
Chile 389 425 9.4% Poland 3,698 4,184 13.1%
China 311,684 421,364 35.2% Portugal 142 444 211.6%
Colombia 0 0 n/a Romania 360 625 73.6%
Croatia 60 264 340.1% Russia 7,347 7,451 1.44%
Czech Republic 704 1,357 92.8% Saudia Arabia 79 89 11.5%
Denmark 3,529 6,471 83.4% Serbia 9 6 -30.4%
Ecuador 0 13 n/a Singapore 15,716 15,622 -0.6%
Estonia 140 170 21.3% Slovakia 22 309 1320.8%
Finland 2,768 3,194 15.4% Slovenia 0 113 n/a
France 19,365 20,111 3.9% South Africa 1,725 2,485 44.0%
Germany 34,836 41,918 20.3% South Korea 9,573 8,110 -15.3%
Greece 129 1,467 1035.2% Spain 2,315 3,591 55.1%
Hong Kong 27,085 24,350 -10.1% Sweden 15,343 14,840 -3.3%
Hungary 198 474 139.7% Switzerland 6,272 4,825 -23.1%
India 3,347 1,343 -59.9% Taiwan 9,791 3,416 -65.1%
Indonesia 677 567 -16.1% Thailand 1,416 785 -44.6%
Ireland 691 2,540 267.5% Turkey 1,356 1,816 33.9%
Israel 402 492 22.3% Ukraine 497 644 29.7%
Italy 3,226 5,511 70.8% United Arab Emirates 937 1,849 97.3%
Japan 32,451 44,469 37.0% United Kingdom 54,291 85,567 57.6%
Latvia 0 90 n/a USA 196,564 239,084 21.6%
Lithuania 26 132 378.3% Vietnam 433 691 59.6%
Source: Cushman & Wakefield, Property Data, KTI and RCA

Annual change figures have been calculated based on the total values and not rounded values
17
GLOBAL YIELDS
GLOBAL YIELDS GLOBAL YIELDS

COUNTRY OFFICES SHOPS INDUSTRIAL TREND COUNTRY OFFICES SHOPS INDUSTRIAL TREND
Argentina 9.00% 7.50% 10.00% Lithuania 7.00% 8.00% 8.50%

Australia 6.25% 5.25% 8.00% Luxembourg 5.75% 5.00% 8.50%
Austria 4.80% 3.10% 7.25% Malaysia 6.00% 5.50%* 7.50%
Bahrain 10.00% 10.00% 10.00% Mexico 10.75% 10.50% 11.75%
Belgium 6.25% 4.35% 7.10% Netherlands 6.30% 4.50% 7.70%
Brazil 9.00% 8.00%* 10.50% New Zealand 7.50% 7.50%* 7.40%
Bulgaria 9.50% 9.25% 11.75% Norway 5.00% 4.75% 6.50%
Canada 5.50% 5.75% 6.50% Oman 9.00% 9.00% 9.00%
Channel Islands 6.00% 6.75% 8.00% Peru 11.50% 23.00%* 12.00%
Chile 8.50% 7.50% 9.50% Philippines 7.25% 3.50% 10.20%
China 5.60% 4.80% 7.00% Poland 6.00% 5.75%* 7.50%
Colombia 9.00% 15.00%* 14.00% Portugal 7.50% 6.75% 9.75%
Croatia 8.25% 8.00% 9.00% Romania 8.50% 8.50%* 9.50%
Czech Republic 6.25% 5.50%* 8.25% Russia 8.50% 9.00%* 11.50%
Denmark 5.00% 4.75% 7.50% Serbia 9.50% 8.00% 13.00%
Ecuador 11.90% 15.80% 12.45% Singapore 3.90% 5.30% 6.80%
Estonia 7.90% 8.25% 9.50% Slovakia 7.25% 7.25%* 8.75%
Finland 5.25% 5.00% 7.50% Slovenia 8.50% 7.00% 10.00%
France 4.25% 3.75% 7.25% South Africa 8.75% 7.25%* 9.50%
Germany 4.20% 3.60% 6.50% South Korea 5.50% 6.75%* -
Greece 9.25% 7.80% 12.00% Spain 5.75% 4.85% 8.25%
Hong Kong 2.90% 2.40% 2.70% Sweden 4.50% 4.50% 6.50%
Hungary 7.50% 7.25%* 9.25% Switzerland 3.75% 3.80% 5.50%
India 10.50% 7.00% 12.00% Taiwan 2.25% 2.00% 2.50%
Indonesia 8.50% 10.00%* 9.50% Thailand 7.00% 9.00%* 8.00%
Ireland 6.00% 5.50% 8.00% Turkey 7.00% 7.00%* 9.00%
Israel 7.50% 7.25% 7.50% Ukraine 12.50% 12.50% 11.00%
Italy 5.75% 7.00%* 8.25% United Arab Emirates 7.50% 9.25%* 10.00%
Japan 3.90% 4.00% 5.30% United Kingdom 3.75% 2.50% 5.50%
Latvia 7.75% 8.00% 9.25% USA 5.41% 6.35% 6.97%
Vietnam 11.25% 12.00% 10.00%
* Shopping Centres
Note: Yields marked in red are calculated on a net basis to include transfer costs, tax and legal fees.
Source: Cushman & Wakefield
Data as at Dec 2013
18
RESEARCH SERVICES
OUR RESEARCH SERVICES ALLIANCE & ASSISTANCE FOR FURTHER INFORMATION CONTACT:
The Central Research & Consultancy Team provides a strategic This report has been prepared by Cushman & Wakefield and its alliance
advisory and supporting role to our clients. Consultancy projects partners globally. The information was collected and edited by the
are undertaken on a local and international basis, providing in-depth Central Research & Consultancy Team from the Cushman & Wakefield
advice and analysis, detailed market appraisals and location and network, with particular thanks to the following offices:
investment strategies. Typical projects include:
Austria Inter-pool Immobilien GmbH
• Site specific location analysis, ranking and targeting for occupation Bahrain Cluttons LLP
or investment Bulgaria Forton
Channel Islands Buckley & Company Ltd.
• Analysis of future development activity and existing Denmark RED – Property Advisers Joanna Tano Erin Can
supply/competition Director Marketing & Editorial Manager
Estonia Ober-Haus Real Estate Advisers*
Head of EMEA Central EMEA Central Research & Consultancy
• Market research and demand analysis by retail or industry sector Finland Tuloskiinteistöt Oy
Research & Consultancy [email protected]
Greece Proprius SA
• Rental analysis, forecasts & investment portfolio strategy Ireland Lisney LLP
[email protected] +44 20 7152 5206
+44 20 7152 5944
• Reliable and comparable data and market intelligence – we regularly Israel Inter Israel Real Estate Consultants
track over 65 countries, including multiple data points across the Latvia Ober-Haus Real Estate Advisers*
world. As part of this consultancy service line, we can provide this Lithuania Ober-Haus Real Estate Advisers*
timeseries data on the retail, office and industrial property sectors. Malaysia YY Property Solutions GLOBAL RESEARCH CONTACTS
New Zealand Bayleys Realty Group Ltd.
For more information on this service line, contact Joanna Tano
Norway Eiendomshuset Malling & Co.
([email protected])
Romania Activ Property Services
Slovenia S-Invest d.o.o.
THE REPORT South Africa ProAfrica Property Services
Switzerland SPG Intercity
This report was written by David Hutchings, Joanna Tano United Arab Emirates Cluttons LLP
and Erin Can of Cushman & Wakefield.
*Not official Cushman & Wakefield alliance partners
This report has been prepared using data collected through our own
research as well as information available to us from public and other Maria Sicola Sigrid Zialcita
Executive Managing Director Managing Director
external sources. The transaction information used relates to SOURCES Americas Research Asia Pacific Research
non-confidential reported market deals, excluding indirect [email protected] [email protected]
Macro economic data
investment and future commitments. In reference to investment +1 415 773 3542 +65 6232 0875
Macrobond, Economist Intelligence Unit, Consensus Economics
volumes, while the report summary considers all sectors including
and the Financial Times.
multifamily residential, the country pages and global volume tables
exclude multifamily residential deals. All investment volumes are On each country page: For industry-leading intelligence to support your real estate
quoted pertaining to deals of USD5 million and above. • The GDP per capita data is on a purchasing power parity (PPP) basis and business decisions, go to the Cushman & Wakefield
• The interest rates are year-end base rates Knowledge Center at cushmanwakefield.com/knowledge
In respect of all external information, the sources are believed
to be reliable and have been used in good faith. However, • Currency conversion rates are December month end spot rates
Cushman & Wakefield cannot accept responsibility for their Transactional data
accuracy and completeness, nor for any undisclosed matters that Alongside Cushman & Wakefield information, data has been used
would affect the conclusions drawn. Certain of the assumptions and from Property Data, KTI and Real Capital Analytics.
definitions used in this research work are given within the body of
the text. Information on any other matters can be obtained from Where the data was sourced from RCA it is as at 5 February 2014.
the Central Research & Consultancy Team of Cushman & Wakefield.
19
CAPITAL MARKETS CONTACTS

Capital Markets provides comprehensive advice and execution For further information on our services contact:
services to clients engaged in buying, selling, investing in, financing or
developing real estate and real estate-related assets. Our solutions CAPITAL MARKETS
are tailored to meet the objectives of private and institutional
owners and investors, as well as corporate owners and occupiers.
Whether you are seeking to dispose of an asset in London, finance
the purchase of a hotel in Italy, or structure a complex cross border
portfolio deal, Cushman & Wakefield’s expertise in the capital
markets is the gold standard.
Our services include but are not limited to:
• Investment Sales & Acquisitions INVESTMENT STRATEGY THE AMERICAS ASIA PACIFIC EMEA
David Hutchings Jim Underhill John Stinson Jan-Willem Bastijn
• Equity, Debt & Structured Finance Partner CEO Managing Director CEO
• Corporate Finance & Investment Banking Head of EMEA Investment Strategy The Americas Asia Pacific Capital Markets EMEA Capital Markets
[email protected] [email protected] [email protected] [email protected]
+44 20 7152 5029 +1 202 471 3600 +65 6232 0878 +31 20 800 2081
CORPORATE FINANCE & INVESTMENT BANKING
THE AMERICAS ASIA PACIFIC EMEA

Steven Kohn Bernhard Karas Michael Lindsay
President, Cushman & Wakefield Director Partner, Head of
Sonnenblick Goldman, LLC Asia Pacific Capital Markets EMEA Corporate Finance
[email protected] [email protected] [email protected]
+1 212 841 9216 +852 2956 7096 +44 20 7152 5008
or visit www.cushmanwakefield.com
20
CAPITAL MARKETS CONTACTS

THE AMERICAS ASIA PACIFIC
BRAZIL UNITED STATES AUSTRALIA INDONESIA PHILIPPINES
Marcelo C. Santos NEW YORK SAN FRANCISCO Tony Dixon Handa Sulaiman Eric Manuel
Vice President, Capital Markets & V&A Fred Harmeyer Steve Weilbach Director, Investment Sales Executive Director Director, Capital Markets
[email protected] Senior Managing Director National Head of Multifamily [email protected] [email protected] [email protected]
+55 11 3014-5201 Capital Markets [email protected] +61 2 9229 6853 +62 21 2550 9570 +63 2 554 2927
Praca Jose Lannes, 40- 3 Floor [email protected] +1 415 773 3510 Level 18, 175 Pitt Street Indonesia Stock Exchange Building 9th Floor Ecotower
São Paulo - SP - Brazil, 04571-100 +1 212 841 7515 Sydney Tower 2, 15/F 32nd St. cor. 9th Ave. BGC
425 Market Street, Suite 2300
Brazil NSW 2000 JI. Jend. Sudirman Kav.52-53 Taguig City 1634
Steven Kohn San Francisco, CA 94105
President, Equity USA Australia Jakarta 12190 Philippines
CANADA Debt & Structured Finance Indonesia
Scott Chandler [email protected] LOS ANGELES CHINA VIETNAM
President & CEO Canada +1 212 841 9216 Ted Li JAPAN Tim Horton
Curtis Magleby
[email protected] National Director, Capital Markets Yoshiyuki Tanaka General Manager
Michael Rotchford Senior Managing Director
+1 416 359 2490 [email protected] Executive Director [email protected]
Executive Vice President Capital Markets
33 Yonge Street, Suite 1000 [email protected] +86 10 5921 0820 [email protected] +84 8 3823 7968
Investment Banking
Toronto, Ontario MSE 1S9 +1 213 955 6467 +81 33596 7060
[email protected] Units 602-607, Unit 16, 14th Floor, Vincom Center
Canada +1 212 841 7616 Tower 1, China Central Place Sanno Park Tower 13F 72 Le Thanh Ton St.
601 S. Figueroa Street
47th Floor No. 81 Jianguo Lu, Chaoyang District 2-11-1 Nagatacho, Chiyoda-ku Ben Nghe ward, District 1
MEXICO Alex Ray
Los Angeles, CA 90017 Beijing 100025 Tokyo 100-6113 Ho Chi Minh City
Managing Director
Ander Legorreta USA China Japan Vietnam
Global Capital Advisory
Executive Director, Capital Markets
[email protected]
[email protected]
+1 212 841 5067
HONG KONG REPUBLIC OF KOREA FOR ALL OTHER APAC
+52 55 8525 8027 Kent Fong Shawna Yang ENQUIRIES CONTACT:
1290 Avenue of the Americas
Paseo de los Tamarindos Senior Director Associate Director John Stinson
New York
60-B, 2nd floor [email protected] [email protected] Managing Director
NY 10104-6178
Col. Bosques de las Lomas +852 2956 7081 +82 2 3708 8831 Capital Markets Asia Pacific
USA
Mexico City, D.F. C.P. 05120 [email protected]
9/F St George's Building 5/F Korea Computer Building
Mexico +65 6232 0878
2 Ice House Street 21 Sogong-dong, Jung-gu
Hong Kong Seoul, 100-070
South Korea
INDIA
Diwakar Rana SINGAPORE
Director Priyaranjan Kumar
[email protected] Regional Director
+91 124 469 5555 Capital Markets Asia Pacific
[email protected]
14th Floor, Tower C
+65 8339 5335
Building 8, DLF Cyber City
Gurgaon, Haryana 122002 3 Church Street
India #09-03, Samsung Hub
Singapore 049483
Singapore
21
EMEA
BELGIUM ITALY PORTUGAL SPAIN UNITED KINGDOM
Maxime Xantippe BERLIN MILAN Luis Antunes BARCELONA David Erwin
Partner, Head of Capital Markets Hanns-Joachim Fredrich Stephen Screene Partner, Head of Capital Markets Reno Cardiff CEO, Capital Markets UK
[email protected] Partner, Capital Markets Partner, Head of Capital Markets [email protected] Partner, Capital Markets [email protected]
+32 2 514 4000 hannsjoachim.fredrich@ [email protected] +351 21 322 4753 [email protected] +44 20 7152 5016
Avenue des Arts, 56 eur.cushwake.com +39 02 63799 224 Avenida da Liberdade 131 +34 93 488 1881 Andrew Thomas
Kunstlaan 56 +49 30 20 21 4 46 20 2nd Floor Partner, London Capital Markets
Via F. Turati 16/18 Passeig de Gràcia 56, 7th Floor
1000 Brussels Leipziger Straße 126 20121 Milan 1250-140 Lisbon 08007 Barcelona [email protected]
Belgium 10117 Berlin Italy Portugal Spain +44 20 7152 5181
Germany PJ Thibault
CZECH REPUBLIC ROME RUSSIA MADRID Partner, Head of Business Space
Jiří Fousek HAMBURG Carlo Vanini Irina Ushakova Rupert Lea [email protected]
Partner, Head of Capital Markets Frank Goedecke Partner, Capital Markets Partner, Head of Capital Markets Partner, Capital Markets +44 20 7152 5022
[email protected] Senior Consultant, Capital Markets [email protected] [email protected] [email protected] Michael Lindsay
+420 234 603 210 [email protected] +39 06 420079 45 +7 495 799 9872 +34 91 781 3837 Partner Head of EMEA
Na Prikope 1 +49 40 30 088 1114 Ducat Place ||| BC, 6th Floor Corporate Finance
Via Vittorio Veneto 54b Edificio Beatriz
110 00 Prague 1 Bergstraße 16 00187 Rome Gasheka Street, 6 José Ortega y Gasset, 29-6th Floor [email protected]
Czech Republic 20095 Hamburg Italy 125047 Moscow 28006 Madrid +44 20 7152 5008
Hamburg, 20355 Russia Spain 43-45 Portman Square
FRANCE Germany THE NETHERLANDS London, W1A 3BG
Thierry Juteau SLOVAKIA SWEDEN
Mathijs Flierman England
Partner, Head of Capital Markets MUNICH Partner, Head of Capital Markets Andrew Thompson Magnus Lange
[email protected] Thomas Müller [email protected] Partner, CEO Slovakia Partner, CEO Sweden FOR ALL OTHER EMEA
+33 1 53 76 95 51 Partner, Capital Markets +31 20 800 2089 [email protected] [email protected] ENQUIRIES CONTACT:
[email protected] +421 259 209 340 +46 85 456 7714
11-13 Ave de Friedland Atrium building, 3rd Floor Jan-Willem Bastijn
Paris 75008 +49 89 24 214 3333 Pribinova 10 CEO EMEA Capital Markets
Strawinskylaan 3125 Sergels Torg 12
France Maximilianstraße 40 1077 ZX Amsterdam 811 09 Bratislava SE-111 57 Stockholm [email protected]
80539 Munich Netherlands Slovak Republic Sweden +31 20 8002081
GERMANY Germany
FRANKFURT POLAND TURKEY
Frank Nickel HUNGARY Piotr Kaszyński Tuǧra Gönden
Partner Head of Capital Markets Mike Edwards Partner, Head of Capital Markets Partner, Head of Capital Markets
CEO Germany Partner, Head of Capital Markets [email protected] [email protected]
[email protected] [email protected] +48 22 820 2037 +90 212 334 7800
+49 69 50 607 3 111 +36 1 484 1385
James Chapman Inönü Cad. Devres Han No. 50 2/A
Westhafenplatz 6 1052 Budapest Partner, Head of CE Capital Markets Gümüssuyu
60327 Frankfurt am Main Deak Palota [email protected] Istanbul 34437
Germany Deak Ferenc UTCA 15 +48 72 220 2139 Turkey
Budapest
(New address from May 2014 will be Metropolitan
Hungary
Rathenauplatz 1, 60313 Frankfurt) Plac Pilsudskiego 1
00-078 Warsaw
Poland
22
REGIONAL MARKET PROFILES

This International Investment Atlas Summary is supplemented by three Regional Market Profiles, all of which include page by page country
overviews. To download all sections of this report and access global contacts please visit our dedicated International Investment website:
www.investmentatlas.cushwake.com
MARKETS PROFILES: AMERICAS MARKETS PROFILES: ASIA PACIFIC MARKETS PROFILES: EMEA
INTERNATIONAL INTERNATIONAL INTERNATIONAL

INVESTMENT ATLAS INVESTMENT ATLAS INVESTMENT ATLAS
A Cushman & Wakefield Capital Markets Research Publication

AMERICAS MARKET PROFILES 2014 A Cushman & Wakefield Capital Markets Research Publication
ASIA PACIFIC MARKET PROFILES 2014 A Cushman & Wakefield Capital Markets Research Publication
EMEA MARKET PROFILES 2014
Argentina Australia Austria Lithuania

Brazil China Bahrain Luxembourg
Canada Hong Kong Belgium Netherlands
Colombia India Bulgaria Norway
Mexico Indonesia Channel Islands Poland
Peru Japan Croatia Portugal
United States of America Malaysia Czech Republic Romania
New Zealand Denmark Russia
Singapore Estonia Slovakia
South Korea Finland Slovenia
Taiwan France South Africa
Vietnam Germany Spain
Greece Sweden
Hungary Switzerland
Ireland Turkey
Israel Ukraine
Italy United Arab Emirates
Latvia United Kingdom
23
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we aim to assist our clients in making property decisions that meet their objectives and enhance their competitive position.
In addition to producing regular reports such as global rankings and local quarterly updates available on a regular basis,
C&W also provides customized studies to meet specific information needs of owners, occupiers and investors.
Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises
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sales and management assignments. Founded in 1917, it has approximately 250 offices in 60 countries, employing
more than 16,000 professionals. It offers a complete range of services for all property types, including leasing,
sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate
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firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.
This report has been prepared solely for information purposes. It does not purport to be a complete description
of the markets or developments contained in this material. The information on which this report is based has been
obtained from sources we believe to be reliable, but we have not independently verified such information and we do
not guarantee that the information is accurate or complete.
©2014 Cushman & Wakefield, Inc. All rights reserved.
Cushman & Wakefield, LLP

43-45 Portman Square
London W1A 3BG
www.cushmanwakefield.com
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INTERNATIONAL

Global Investment Volumes 16–17

GLOBAL INVESTMENT ACTIVITY

The global market turned a corner in 2013, with investment activity

FIGURE 1 – GLOBAL PROPERTY INVESTMENT VOLUMES

GLOBAL INVESTMENT ACTIVITY

FIGURE 4 – SOURCES OF INTERNATIONAL CAPITAL

INVESTMENT TARGETS Warsaw – Poland

FIGURE 5 – SECTOR SHARE OF GLOBAL TRADING

2008 2009 2010 2011 2012 2013

GLOBAL INVESTMENT ACTIVITY

Singapore more, the investment recovery is running ahead of the Chongqing

South Korea by slower growth as occupier markets catch up." Paris

2012 2013 2012 2013

FIGURE 8 – APAC PROPERTY INVESTMENT VOLUMES

Investment Volume Yield (ex multifamily)

GLOBAL INVESTMENT ACTIVITY

FIGURE 9 – EMEA PROPERTY INVESTMENT VOLUMES

Investment Volume Yield (ex multifamily)

Quarterly investment volumes (USD bn)

All-sector average prime yield

Buenos Aires – Argentina

GLOBAL INVESTMENT ACTIVITY

Europe and competing global emerging markets. In contrast,

GLOBAL INVESTMENT ACTIVITY

and ready to take on more risk as well as increased allocations from

GLOBAL INVESTMENT ACTIVITY

In Asia Pacific, changing growth dynamics and a divergence in

1200 Source: Cushman & Wakefield

GLOBAL INVESTMENT VOLUMES

Argentina 60 43 -28.8% Luxembourg 542 946 74.5%

Source: Cushman & Wakefield, Property Data, KTI and RCA

Argentina 77 55 -29.0% Luxembourg 697 1,259 80.7%

Source: Cushman & Wakefield, Property Data, KTI and RCA

GLOBAL YIELDS GLOBAL YIELDS

Argentina 9.00% 7.50% 10.00% Lithuania 7.00% 8.00% 8.50%

CAPITAL MARKETS CONTACTS

CORPORATE FINANCE & INVESTMENT BANKING

THE AMERICAS ASIA PACIFIC EMEA

CAPITAL MARKETS CONTACTS

REGIONAL MARKET PROFILES

INTERNATIONAL INTERNATIONAL INTERNATIONAL

A Cushman & Wakefield Capital Markets Research Publication

Argentina Australia Austria Lithuania

Cushman & Wakefield, LLP

© 2014 Cushman & Wakefield

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