2012 Global Market report - NAI Global

Xi’an, China
Guam
Contact
NAI Curzon
+852 2180 6308
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
3,722,029
9.6%
$6,422.28
$4,763.87
2.7%
4.0%
6.6%
1,348.12
Xi’an is regarded as a world famous cultural city and an
international tourist destination. From January to August
2011, fixed asset investment was RMB 167.5 billion (US
$26.2 billion), representing an increase of 29% yearon-year.
The industrial output value reached RMB 52.7
billion (US $8.2 billion), up 15.7% year-on-year. Economic
fundamentals indicated that Xi’an’s industrial growth is
steady. Xi’an has been supported by the Government’s “go
west” policy, therefore we expect commercial and retail
activities to continue to be strong in 2012.
Xi’an, as a second-tier city in China after the likes of Beijing
and Shanghai, has a track record in the business process
outsourcing field. The local government is using taxes and
other incentives to encourage companies and professionals
to relocate there. In recent years, the service outsourcing
industry in Xi'an has maintained a robust growth. The
outstanding contractor enterprises, rich human resources
and preferential policies have paved a solid foundation for
Xi'an to becoming a capital for service outsourcing.
Xi’an’s principal strategic industry is IT and high-tech. There
are more than 800 high-tech enterprises in Xi'an, with
heavyweight firms like Intel, Sybase, SPSS, Fujitsu, NEC,
Sorun and Platform all having a presence in the Xi’an
National Hi-tech Industrial Development Zone. Other industries
driving Xi’an’s growth are equipment manufacturing, tourism,
service industries and cultural industries.
At the end of March 2011, retail sales of consumer goods
reached RMB 46.24 billion (US $7.11 billion), up by 10.1%
compared with the same period last year. The average rental
of prime retail space reached RMB 1,500/SM per month
(US $234.40) in Q3 2011, representing a decrease of 8%
quarter-on-quarter.
The average rental of prime office properties reached RMB
130/SM per month (US $20.30) in Q3 2011, representing
a decrease of 11.7% quarter-on-quarter. As of September
2011, no new Class A office buildings had been launched
in the market resulting in the total inventory remaining the
same at 489,200 SM. There have been no signs to indicate
that economic activities have seen a slow down in Xian. It is
expected that rental levels for office space will move
with an upward trend in 2012 due to limited supply and
sustainable demand generated by occupiers who are in the
need of office relocation.
Contact
NAI ChaneyBrooks
+671 649 8742
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population
212
1.8%
$2.7
$15,000.00
2.5%
13.3%
N/A
183,286
Guam is one of five unincorporated territories of the US that
includes Puerto Rico, American Samoa, Northern Mariana
Islands and the US Virgin Islands. Its westernmost location
and proximity to the major Asian economies makes Guam a
strategic outpost for US military presence in the Pacific. It
is staged to see an economic boom that rests on the political
will of Tokyo and Washington DC.
Guam’s economy remains positive with moderate aggregate
growth expected both in the public and private sectors. The
pace and magnitude of growth will be chiefly determined by
the timing of military construction projects, the recovery of
Japan, and the sustained growth of visitors from Korea,
Taiwan and China. Tourism and military expenditures remain
the chief drivers of Guam’s economy.
The visitor industry saw impressive growth in 2010 when
air service to Guam was expanded. Tourist arrivals were
up 11.2% and hotel occupancy tax receipts also increased
by 11.9%. However, the Great East Japan Earthquake of
March 11, 2011 reversed all gains, dropping arrivals by
more than 20%. Although the market has since returned to
pre-disaster statistics, the wild swing is testament to its
reliance on Japan.
Construction companies wait in great anticipation for the
start of the relocation of US Marine Corp forces from
Okinawa. Since the Record of Decision (ROD) was
announced in September of 2010 to proceed with the
relocations plans, political indecisiveness by the Japanese
government has stalled the process making it difficult for
stakeholders to decide on employment and building supply
deployments. The future of Guam’s military build-up was
further clouded with the announcement of cutbacks in
military expenditures by the US Congress as part of its
austerity programs. Until the US military build-up and the
correlating construction start dates are ascertained, the
economic growth scenario for Guam ranges from flat to
modest growth. If however, the newly elected Japan Prime
Minister Noda is successful in his attempts to garner support
in Okinawa for the military relocation plans, Guam is clearly
positioned to see a boom period unlike any it has witnessed
in the past.
Xi’an At A Glance
conversion 6.83 rmb = 1 us$ RENT/M 2 /MO US$ RENT/SF/YR
low High low High Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
RMB
RMB
100.00 RMB
110.00 RMB
120.00 $ 16.32
150.00 $ 17.95
$ 19.59
$ 24.48
11.00%
8.00%
Class B (Secondary)
suburban offIce
RMB 60.00 RMB 80.00 $ 9.79 $ 13.06 12.00%
New Construction (AAA)
RMB 75.00 RMB 90.00 $ 12.24 $ 14.69 20.00%
Class A (Prime)
RMB 50.00 RMB 90.00 $ 8.16 $ 14.69 10.00%
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
RMB
RMB
RMB
RMB
15.00 RMB
10.00 RMB
8.00 RMB
3.00 RMB
40.00 $
20.00 $
18.00 $
10.00 $
2.45
1.63
1.31
0.49
$
$
$
$
6.53
3.26
2.94
1.63
8.00%
15.00%
18.00%
23.00%
Downtown
RMB 1,300.00 RMB 1,700.00 $ 212.19 $277.48 10.00%
Neighborhood Service Centers
Community Power Center
RMB
RMB
175.00 RMB
150.00 RMB
400.00 $ 28.56
500.00 $ 24.48
$ 65.29
$ 81.61
16.00%
13.00%
Regional Malls
RMB 800.00 RMB 1,250.00 $ 130.58 $204.03 8.00%
Solus Food Stores
RMB 70.00 RMB 800.00 $ 11.43 $130.58 9.00%
deVeloPment land low/m 2 High/m 2 low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
RMB 2,800.00 RMB 5,000.00 $ 1,659,035.94 $ 2,962,564.18
RMB 900.00 RMB 4,000.00 $ 533,261.55 $ 2,370,051.34
RMB 400.00 RMB 2,000.00 $ 237,005.13 $ 1,185,025.67
RMB 1,000.00 RMB 3,500.00 $ 592,512.84 $ 2,073,794.93
RMB 1,500.00 RMB 7,000.00 $ 888,769.25 $ 4,147,589.85
RMB 1,200.00 RMB 6,500.00 $ 711,015.40 $ 3,851,333.43
Guam At A Glance
US$ RENT/SF/YR low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
$
N/A
N/A
26.50
N/A
N/A
N/A
N/A
$ 42.80
N/A
N/A
$
N/A
N/A
34.65
N/A
N/A
N/A
N/A
14.00%
N/A
N/A
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
15.12
8.42
8.42
N/A
$ 38.88
$ 19.44
$ 19.44
N/A
$ 34.56
$ 18.14
$ 18.14
N/A
18.00%
9.00%
11.00%
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
$
$
$
$
35.64
14.04
10.36
38.88
N/A
$ 116.64
$ 64.80
$ 16.20
$ 77.76
N/A
$
$
$
$
93.96
46.44
18.46
77.76
N/A
14.00%
12.00%
11.00%
7.00%
N/A
deVeloPment land
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
Low/Acre
High/Acre
N/A
N/A
N/A
N/A
$ 815,000.00 $ 1,163,200.00
$ 815,000.00 $ 1,163,200.00
$ 1,285,000.00 $ 2,480,000.00
$ 116,640.00 $ 734,400.00
2012 Global Market Report n www.naiglobal.com 35