2012 Global Market report - NAI Global

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Kuala Lumpur, Malaysia Contact NAI Zerin Properties +603 209222008 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 127,724 Malaysia’s economy continued to grow albeit at a slower rate than originally forecasted. In Q2 2011, GDP expanded by 4.4% driven by the services sector as the main contributor. Real estate and business services recorded robust growth (8.2%) during the first half of 2011 driven by stock market trading and computer services. Malaysia is confident it will achieve a moderate 5.0% economic growth in 2011 despite worsening external conditions, with domestic demand expected to contribute to economic growth under ETP and the 10th Malaysia Plan. The global financial crisis and large supply of office space that is currently in the pipeline is expected to deter any significant increases in office rents. Nevertheless, new buildings with MSC status or green building certification are expected to perform better in securing tenants and attracting higher rents. The government’s initiative to attract 100 multinational companies will subsequently increase the overall net absorption rate of office space. The average rents for newer Class A buildings in Kuala Lumpur city range from MYR 8.00 to MYR 11.00/SF. Current office vacancy rates stand at 13%. Office transactions in 2011 included the sale of One Mont’ Kiara (completed by Zerin Properties), Menara Multi Purpose, Wisma Goldhill and Putra Place for a total of 1.1734 billion SF. The industrial property sector picked up with strong demand from foreign investors. Vacancy rates remain very low while rents have been stable. There is a new trend for clean, boutique type industrial facilities. The retail sector was strong in 2011, largely driven by consumer spending and improved economic conditions. Overall, the retail subsector grew by an average of 7%. A retail mall, One Mont Kiara, sold for MYR 219 million (completed by Zerin Properties) with three other malls sold, namely Klang Parade, Ipoh Parade and Seremban Parade for MYR 450 million. Development land transactions have been active with average land prices in the city ranging from MYR 1,500 to MYR 3,000/SF. The Kuala Lumpur hospitality sector performed well during Q3 2011. All the three categories (3-Star, 4-Star and 5- Star), recorded marginal increase for both occupancy and average room rates. The average occupancy rates for 3- Star, 4-Star and 5-Star hotels were recorded at 70%, 61% and 69% respectively. Average room rates for 3-Star, 4-Star and 5-Star hotels during Q3 2011 were RM 162, RM 240 and RM 380 respectively. Kuala Lumpur At A Glance conversion 3.18 mYr = 1 us$ RENT/SF/MO US$ RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) MYR 8.00 MYR 6.00 MYR 3.50 MYR 4.50 MYR 4.00 MYR 11.00 MYR 15.00 MYR 4.50 MYR 8.00 MYR 5.00 $ 30.19 $ 22.64 $ 13.21 $ 16.98 $ 15.09 $ 41.51 $ 56.60 $ 16.98 $ 30.19 $ 18.87 N/A 95.00% 85.00% N/A 95.00% Class B (Secondary) IndustrIal MYR 2.50 MYR 3.50 $ 9.43 $ 13.21 85.00% Bulk Warehouse Manufacturing High Tech/R&D retaIl MYR 1.00 MYR 1.30 MYR 1.80 MYR 1.60 MYR 2.00 MYR 2.50 $ $ $ 3.77 4.91 6.79 $ $ $ 6.04 7.55 9.43 N/A N/A N/A Downtown Neighborhood Service Centers MYR 14.00 MYR 7.00 MYR 20.00 MYR 30.00 $ 52.83 $ 26.42 $ 75.47 $ 113.21 90.00% 95.00% Community Power Center MYR 2.50 MYR 15.00 $ 9.43 $ 56.60 95.00% Regional Malls Solus Food Stores MYR 30.00 N/A MYR 50.00 N/A $ 113.21 N/A $ 188.68 N/A 99.00% N/A deVeloPment land low/acre High/acre low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential 5.0% $236.56 $8,238.51 2.5% - 2.7% 3.2% 3.0% 28.713 MYR 65,340,000.00 MYR 130,680,000.00 $20,547,169.81 $ 41,094,339.62 MYR 8,712,000.00 MYR 17,424,000.00 $2,739,622.64 $ 5,479,245.28 MYR 3,484,800.00 MYR 5,227,200.00 $1,095,849.06 $ 1,643,773.58 MYR 1,306,800.00 MYR 2,178,000.00 $ 410,943.40 $ 684,905.66 MYR 15,246,000.00 MYR 21,780,000.00 $4,794,339.62 $ 6,849,056.60 MYR 6,534,000.00 MYR 87,120,000.00 $2,054,716.98 $27,396,226.42 Auckland Central, New Zealand Contact NAI Harcourts Auckland Regional Office +64 9 520 5569 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 104,428 Auckland’s commercial real estate market is suffering from a severe shortage of investment properties, however, the forthcoming general election and potential double dip global recession has not dampened investor demand. Recent auctions of industrial investments below $1.5 million with term leases showed yields of 7.0% to 7.6%; this is an improvement of 50 basis points compared to the same time in 2010. New development for non-speculative industrial and retail projects are showing some green shoots. New projects are underway in the industrial areas of Albany, West Auckland and South Auckland and industrial vacancies have fallen to around 5% with the three year hiatus on development activity and increased leasing activity keeping the vacancy rates stable. The retail sector has low vacancies across the region, but tenant demand remains relatively flat in competitive trading conditions. There is an increase of fixed rent reviews enabling landlords to maximize income returns and tenants to fix operating costs. The influx of around 100,000 tourists for the Rugby World Cup has produced significant spending in the hospitality sectors but little impact on other retail spending. Prime retail rentals are stable but the recession has seen store closures in secondary retail locations however, Westfield continues to expand their malls in Newmarket and Albany. Tight lending conditions and the time taken to obtain resource consent have slowed land sales with prices falling up to 50% and sales ranging from $150 to $350/SM across the industrial sector. Office vacancies across the CBD remain around 12% with the highest vacancy in Class B & C office buildings. Class A space has been taken up in the sublease market and vacancy is less than 5% with total vacancy approximately 140,000 SM. Premium rentals are around $480/SM and incentives range from 10% to 17%. Auckland office supply is expected to increase an additional 80,000 SM in the next three to four years leading to a forecast vacancy of 16% in 2015. Prime face rentals and yields are expected to stabilize and forecast improvements in the business and employment sector should absorb a sizeable portion of the vacant space. Confidence in New Zealand’s resilience to the global economic forecasts have seen some significant transactions by local and offshore investors recently, including the Hyatt Regency Hotel for $60 million and the Apex Retail Centre also for $60 million. Auckland Central At A Glance conversion 1.26 nZd = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) NZD 2,000.00 NZD 3,500.00 $ 147.46 $ 258.06 N/A Class A (Prime) Class B (Secondary) suburban offIce NZD NZD 400.00 NZD 180.00 NZD 600.00 300.00 $ $ 29.49 13.27 $ 44.24 $ 22.12 N/A N/A New Construction (AAA) NZD 1,500.00 NZD 3,000.00 $ 110.60 $ 221.20 N/A Class A (Prime) Class B (Secondary) IndustrIal NZD NZD 275.00 NZD 150.00 NZD 300.00 275.00 $ $ 20.28 11.06 $ 22.12 $ 20.28 N/A N/A Bulk Warehouse Manufacturing NZD NZD 80.00 NZD 80.00 NZD 110.00 95.00 $ $ 5.90 5.90 $ $ 8.11 7.00 N/A N/A High Tech/R&D retaIl NZD 110.00 NZD 150.00 $ 8.11 $ 11.06 N/A Downtown NZD 1,300.00 NZD 4,000.00 $ 95.85 $ 294.93 N/A Neighborhood Service Centers Community Power Center NZD 300.00 NZD N/A 700.00 N/A $ 22.12 N/A $ 51.61 N/A N/A N/A Regional Malls NZD 600.00 NZD 1,000.00 $ 44.24 $ 73.73 N/A Solus Food Stores N/A N/A N/A N/A N/A 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 3.2% $147.75 $33,456.13 5.5% 5.8% 2.5% 4.416 N/A N/A N/A N/A NZD300.00 NZD400.00 $ 963,538.73 $ 1,284,718.31 NZD 250.00 NZD 350.00 $ 802,948.94 $ 1,124,128.52 NZD 250.00 NZD 350.00 $ 802,948.94 $ 1,124,128.52 NZD250.00 NZD400.00 $ 802,948.94 $ 1,284,718.31 N/A N/A N/A N/A 2012 Global Market Report n www.naiglobal.com 39
Christchurch, New Zealand Wellington, New Zealand Contact NAI Harcourts Holmwood Real Estate + 64 3 378 0020 NAI Harcourts Grenadier Real Estate + 64 3 371 9126 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 104,428 3.2% $147.75 $33,456.13 5.5% 5.8% 2.5% 4.416 Christchurch’s rebuild including commercial, residential and infrastructure expenditure has been estimated at $30 billion in the latest revision. The Canterbury Development Corporation anticipates 30,000 trades people will be required over 10 to 15 years for the rebuild. The new draft city plan has some great ideas which potentially could make Christchurch one of the top cities in the world. The draft city plan was released for comment on August 16, 2011 and has received many positive responses from the public and larger institutions. Provided some restrictions which create barriers to encouraging businesses back to the CBD are removed, we believe property owners will get behind the plan and rebuild with confidence. Insurance has been an issue for both existing and new developments, but an easing attitude from the insurers is anticipated in the coming weeks, allowing more projects to get underway including the new NAI Harcourts offices at 271 Madras Street. The property market continues to show substantial interest from land buyers within and outside the CBD, while vendors who are likely to sell, remains low. Banks are also lining up to support the rebuild provided the insurance handle is decreased. In line with Westpac’s September confidence survey we see regional economic confidence increasing with the two growth drivers being construction and agricultural export incomes. These results bode well for Christchurch and Canterbury, providing more certainty of sustained economic growth for at least the next 10 years. This view is shared by many off shore based investors who, in the face of continued volatility in world share and financial markets, are happy to invest in Christchurch land and rebuild. Contact NAI Harcourts Team Wellington +64 4 801 5199 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 104,428 3.2% $147.75 $33,456.13 5.5% 5.8% 2.5% 4.416 The Wellington Region seems to be emerging quicker from the recessional times than first thought. With the result of an impending election upon us, any government elected will no doubt attempt to soften the effects of mounting global uncertainty through monetary and fiscal measures. Despite these measures it is unlikely to have much of a positive affect on the sluggish property markets. Wellington’s vacancy rates are expected to rise to 14% by 2012 due to the completion of some 48,000 SM of Class A office space. Proposed office developments such as Harbour Quays and Wellington Waterfront will however place pressure on the secondary office landlords to refurbish and improve their stock to minimize movement of their existing tenants, which will no doubt be drawn to higher quality vacancies. In retail, sentiment is down and established stores are reluctant to move, even just round the corner, in case they lose their already fragile customer base. Some key segments such as supermarkets and international brands are still performing well, as shopping locally is cheaper than a spree in Australia. Occupation is still strong within the regional shopping malls such as Westfield and the ‘Golden Mile’ of Lambton Quay. Whereas secondary markets in towns surrounding Wellington are in trouble as a number of prime sites sit vacant. These present great leasing options for enterprising retailers who could be well advised to take advantage of this nervousness as landlords forego rental increases to attract interest. Industrial vacancy rates have been falling as the confidence in this sector steadily increases; vacancy rates in the Hutt Valley which accommodates the majority of industrial space is hovering around 8%. Industrial landlords are proactively reacting to the changing market conditions by offering generous inducements to secure tenants in long term leases. This aggressive approach to letting, coupled with expanding New Zealand manufacturing output over the past six months (according to a BNZ survey) has resulted in industrial property across the Wellington region being the best performing sector when compared to returns from retail and commercial office property. Business and non-business lending, although at a low rate historically, could be on the incline and with lower levels of debt recorded than previous years, a leveling is expected in anticipation of a growing confidence in the positive performance of the commercial property sector. Christchurch At A Glance conversion 1.26 nZd = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal NZD NZD NZD NZD N/A 350.00 200.00 N/A 220.00 150.00 N/A NZD 450.00 NZD 350.00 N/A NZD 270.00 NZD 220.00 $ $ $ $ N/A 25.81 14.75 N/A 16.22 11.06 N/A $ 33.18 $ 25.81 N/A $ 19.91 $ 16.22 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% Bulk Warehouse Manufacturing NZD NZD 70.00 70.00 NZD 120.00 NZD 120.00 $ $ 5.16 5.16 $ $ 8.85 8.85 3.00% 3.00% High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls Solus Food Stores NZD NZD NZD NZD 90.00 300.00 250.00 N/A 600.00 N/A NZD 140.00 NZD 700.00 NZD 350.00 N/A NZD 1,000.00 N/A $ $ $ $ 6.64 22.12 18.43 N/A 44.24 N/A $ 10.32 $ 51.61 $ 25.81 N/A $ 73.73 N/A 3.00% 0.10% 0.10% 0.10% 0.10% 0.10% 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 NZD 1,500.00 NZD 2,500.00 $ 4,817,693.65 $ 8,029,489.42 NZD 1,500.00 NZD 2,500.00 $ 4,817,693.65 $ 8,029,489.42 NZD 300.00 NZD 400.00 $ 963,538.73 $ 1,284,718.31 NZD 300.00 NZD 400.00 $ 963,538.73 $ 1,284,718.31 NZD 400.00 NZD 600.00 $ 1,284,718.31 $ 1,927,077.46 NZD 300.00 NZD 1,100.00 $ 963,538.73 $ 3,532,975.35 Wellington At A Glance conversion 1.26 nZd = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR low High low High Vacancy cItY center offIce New Construction (AAA) NZD 1,500.00 NZD 3,000.00 $ 110.60 $ 221.20 N/A Class A (Prime) Class B (Secondary) suburban offIce NZD NZD 320.00 180.00 NZD NZD 500.00 $ 280.00 $ 23.59 13.27 $ $ 36.87 20.64 N/A N/A New Construction (AAA) NZD 1,200.00 NZD 3,000.00 $ 88.48 $ 221.20 N/A Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl NZD NZD NZD NZD NZD 200.00 150.00 50.00 60.00 100.00 NZD NZD NZD NZD NZD 250.00 $ 200.00 $ 75.00 $ 85.00 $ 150.00 $ 14.75 11.06 3.69 4.42 7.37 $ $ $ $ $ 18.43 14.75 5.53 6.27 11.06 N/A N/A N/A N/A N/A Downtown NZD 1,000.00 NZD 2,500.00 $ 73.73 $ 184.33 N/A Neighborhood Service Centers Community Power Center Regional Malls Solus Food Stores NZD 250.00 N/A N/A N/A NZD 480.00 $ N/A N/A N/A 18.43 N/A N/A N/A $ 35.39 N/A N/A N/A N/A N/A N/A N/A 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 N/A N/A N/A N/A N/A N/A N/A N/A NZD 200.00 NZD 400.00 $ 642,359.15 $ 1,284,718.31 NZD 250.00 NZD 500.00 $ 802,948.94 $ 1,605,897.88 NZD 750.00 NZD 1,000.00 $2,408,846.83 $ 3,211,795.77 NZD 300.00 NZD 1,600.00 $ 963,538.73 $ 5,138,873.23 2012 Global Market Report n www.naiglobal.com 40
Page 1 and 2: 2012 Global Market report Values, t
Page 3 and 4: n n n table of contents General Inf
Page 5 and 6: Global Outlook US Year in Review As
Page 7 and 8: On the Road to Recovery % of Loss S
Page 9 and 10: 55% (1.1 million) owning and 45% (8
Page 11 and 12: short-term leases, the multifamily
Page 13 and 14: Alberta is home to Canada’s oil a
Page 15 and 16: Office The sovereign debt crisis an
Page 17 and 18: Area Type Q1 2010 Q2 2010 Q3 2010 Q
Page 19 and 20: obust telecom infrastructure and av
Page 21 and 22: egion’s cities. Nevertheless, lea
Page 23 and 24: For 2012, absorption in the commerc
Page 25 and 26: n us Highlights - northeast region
Page 27 and 28: n us Highlights - midwest region n
Page 29 and 30: n us Highlights - West region n Ari
Page 31 and 32: Adelaide, Australia Brisbane, Austr
Page 33 and 34: Sydney, Australia Beijing, China Co
Page 35 and 36: Shanghai, China Shenzhen, China Con
Page 37 and 38: Chennai, India Mumbai, India Contac
Page 39: Jakarta, Indonesia Tokyo, Japan Con
Page 43 and 44: Taipei, Taiwan Ho Chi Minh City, Vi
Page 45 and 46: Calgary, Alberta, Canada Edmonton,
Page 47 and 48: Halifax, Nova Scotia, Canada Ottawa
Page 49 and 50: Regina, Saskatchewan, Canada Contac
Page 51 and 52: The Baltics (Latvia/Estonia/Lithuan
Page 53 and 54: Helsinki, Finland Paris - lle de Fr
Page 55 and 56: Tel Aviv, Israel Almaty, Kazakhstan
Page 57 and 58: Amsterdam, The Netherlands Oslo, No
Page 59 and 60: Moscow, Russia St. Petersburg, Russ
Page 61 and 62: Madrid, Spain Stockholm, Sweden Con
Page 63 and 64: Istanbul, Turkey Kiev, Ukraine Cont
Page 65 and 66: Leeds, England, United Kingdom Lond
Page 67 and 68: Latin America sectIon contents Buen
Page 69 and 70: Rio de Janeiro, Brazil Sao Paulo, B
Page 71 and 72: San Jose, Costa Rica Contact NAI Co
Page 73 and 74: Guadalajara, Jalisco, Mexico Guanaj
Page 75 and 76: Mexico City, Mexico Contact NAI Mex
Page 77 and 78: Saltillo, Coahuila, Mexico San Luis
Page 79 and 80: Lima, Peru Caracas, Venezuela Conta
Page 81 and 82: Birmingham, Alabama Huntsville/Deca
Page 83 and 84: Little Rock, Arkansas Bakersfield,
Page 85 and 86: Oakland, California Orange County,
Page 87 and 88: San Francisco, California Ventura C
Page 89 and 90: Hartford, Connecticut Wilmington, D
Page 91 and 92:
Fort Lauderdale, Florida Ft. Myers/
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Miami, Florida Ocala/Gainesville, F
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Tampa Bay, Florida Atlanta, Georgia
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Boise, Idaho Southeast (Idaho Falls
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Fort Wayne, Indiana Indianapolis, I
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Des Moines, Iowa Sioux City, Iowa C
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Baton Rouge, Louisiana Lake Charles
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Greater Portland, Maine Baltimore,
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Greater Springfield, Massachusetts
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Minneapolis/St. Paul, Minnesota Jac
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Billings, Montana Bozeman, Montana
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Omaha, Nebraska Las Vegas, Nevada C
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Portsmouth, New Hampshire Atlantic
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Ocean/Monmouth Counties (“Shore M
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Las Cruces, New Mexico Albany, New
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Westchester, New York Asheville, No
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Raleigh/Durham, North Carolina Farg
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Cincinnati, Ohio Cleveland, Ohio Co
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Oklahoma City, Oklahoma Tulsa, Okla
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Berks County, Pennsylvania Bucks Co
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Philadelphia, Pennsylvania Philadel
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Wilkes-Barre/Scranton/Hazleton, Pen
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Sioux Falls, South Dakota Chattanoo
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Memphis, Tennessee Nashville, Tenne
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Corpus Christi, Texas Dallas, Texas
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Houston, Texas Contact NAI Houston
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Salt Lake City, Utah Washington Cou
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Northern Virginia Seattle/Puget Sou
Page 147 and 148:
Madison, Wisconsin Milwaukee, Wisco
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n Glossary n Acre Area of land equa
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2012 Global Market report - NAI Global

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