2012 Global Market report - NAI Global

Madrid, Spain
Stockholm, Sweden
Contact
NAI Global
+ 1 609 945 4000
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
195,365
0.7%
$1,366.09
$29,605.05
1.1%
19.3%
1.0%
46.144
A new prime minister from the conservative party will
commence running the country in mid-December, with an
overall majority. He is expected to implement major austerity
measures and policies to stimulate the economy in 2012.
Unemployment remains high at 20.8% and GDP growth is
expected to be around 0.8% in 2011 with 1% predicted in
2012 following negative growth in 2010.
In Madrid, the vacancy rate in the office market has continued
to fall and is currently at 10.1%. This is attributed to new stock
coming on the market with no new speculative buildings in
the pipeline. 50,000 SM of vacant space remains in Torre
Cristal in the city center. The vacancy rate is set to increase
with completion of several new projects. Take-up in Q3
2011 was 84,000 SM which is less than the previous year.
In Barcelona, the vacancy rate has slowed to 13.19%, a
significant drop on the previous quarter with prime vacancy
at 9%. Take-up is currently at around 192,000 SM. Space
has been taken-up in Diagonal by Everis and Vodafone.
The housing market in Spain continues to suffer with main
properties up for sale; particularly in the resort areas where
these are often second homes.
The continuing debt crisis has dramatically affected the
investment market as bank lending remains the major obstacle.
In Madrid in 2011, only EUR 218 million had been
invested in the office market. A private investor purchased
an office building in Allagra with the sale totaling EUR 62
million. The prime yields remain stable at 5.75%. In
Barcelona the lack of transactions has helped the yields stay
at 5.75%. It is hoped that some transactions may be
completed by the end of 2011. More opportunistic investors
are beginning to see the possibility for future investments
and are looking for deals from Spanish banks.
In the retail sector, Spanish brands such as Inditex
and Mango, continue to look abroad for growth. Internet
shopping has also grown dramatically in Spain with Gap and
Macys providing this service. Demand remains high in the
prime areas of Barcelona where there is a 0% vacancy rate
and an increase of 6% in rents over the last two years with
Prada, Apple and Ferrari all opening new stores. In Madrid,
the eagerly awaited Abercrombie and Fitch opened as well
as Orange and Pull and Bear.
Contact
NAI Svefa
+46 8 441 15 50
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
173,860
2.6%
$474.69
$50,742.11
1.9%
8.2%
2.0%
9.355
Sweden has been in a recession since 2008–2009, when
GDP fell sharply. The recovery accelerated in 2010, but
during the past summer it began rapidly losing momentum.
Financial turbulence swept in from abroad, sending stock
prices plummeting and adding to uncertainty in the market.
Concerned households and businesses are postponing
consumption and investment decisions. Growth is consequently
slowing and unemployment is expected to level out at
around 7.5% in 2012.
Players in the commercial market include AFA, Alecta,
AMF Pension, Atrium Ljungberg, Diligentia, Fabege,
Hufvudstaden, SEB and Vasakronan. Activity in the
Stockholm market from Q4 2010 through Q2 2011 was
good with recorded transactions in every sector. However,
due to the uncertain world economy and financial
turbulence, we now see that investors are hesitant to make
a move. The majority of those who remain active are
established players with strong financial positions. Foreign
investors with a good financial position continue to show
interest in the market, but are mainly interested in prime
products that are still relatively high priced. Other foreign
investors with difficult financial and debt situations have
been forced to sell their properties. We expect to see this
type of forced selling become more frequent in 2012 since
many loans need to be renegotiated.
Stockholm is expanding with new areas for housing, and in
these areas, some commercial elements are necessary such
as hotels and other services. Approximately 3,100 homes
and 300,000 SM of commercial space are being planned
within the Stockholm city limits. This expansion is mainly
focused in the east areas by the harbor and the west city
area, Kungsholmen.
There is little additional buildable land left in the CBD, but
despite that the city center continues to add new buildings.
The latest addition is Water Front, a conference center with
a hotel and office space that was completed in late 2010.
However, to serve and create new business opportunities,
the infrastructure needs to be improved. At the moment
Stockholm has some ongoing essential projects to fulfill this
requirement. Odenplan is one of the major city planning
areas that is important. During 2011 construction started
on a project called Citybanan, a new station for railway
transportation.
Madrid At A Glance
conversion 0.72 eur = 1 us$ RENT/M 2 /MO 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
EUR
EUR
EUR
EUR
EUR
EUR
22.00
17.00
11.00
15.00
14.50
12.50
EUR
EUR
EUR
EUR
EUR
EUR
27.00 $
23.00 $
15.50 $
20.00 $
17.50 $
17.50 $
34.06
26.32
17.03
23.23
22.45
19.35
$ 41.81
$ 35.61
$ 24.00
$ 30.97
$ 27.10
$ 27.10
N/A
N/A
N/A
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
EUR
EUR
EUR
3.50
2.75
4.50
EUR
EUR
EUR
5.00 $
4.00 $
5.50 $
5.42
4.26
6.97
$
$
$
7.74
6.19
8.52
N/A
N/A
N/A
City Center
Neighborhood Service Centers
Community Power Center (Big Box)
Regional Shopping Centers/Malls
Solus Food Stores
EUR
EUR
EUR
EUR
EUR
40.00
8.00
4.00
6.00
8.00
EUR
EUR
EUR
EUR
EUR
180.00 $
10.00 $
7.00 $
8.00 $
12.00 $
61.93
12.39
6.19
9.29
12.39
$ 278.71
$ 15.48
$ 10.84
$ 12.39
$ 18.58
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
EUR 700.00 EUR 1,050.00 $ 3,934,449.82 $ 5,901,674.73
EUR 210.00 EUR 630.00 $ 1,180,334.95 $ 3,541,004.84
EUR 160.00 EUR 430.00 $ 899,302.82 $ 2,416,876.32
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
Stockholm At A Glance
conversion 6.95 sek = 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
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
SEK
SEK
SEK
SEK
SEK
SEK
SEK
SEK
SEK
3,800.00
2,700.00
1,900.00
1,700.00
1,500.00
1,200.00
800.00
600.00
800.00
SEK 4,900.00 $
SEK 4,000.00 $
SEK 3,000.00 $
SEK 2,600.00 $
SEK 2,400.00 $
SEK 1,600.00 $
SEK 1,300.00 $
SEK 1,200.00 $
SEK 1,300.00 $
50.80
36.09
25.40
22.72
20.05
16.04
10.69
8.02
10.69
$
$
$
$
$
$
$
$
$
65.50
53.47
40.10
34.75
32.08
21.39
17.38
16.04
17.38
6.00%
7.00%
7.00%
12.00%
13.00%
17.00%
10.00%
12.00%
15.00%
City Center
SEK 6,500.00 SEK 8,000.00 $ 86.89 $ 106.94 4.00%
Neighborhood Service Centers
Community Power Center (Big Box)
Regional Shopping Centers/Malls
Solus Food Stores
SEK
SEK
SEK
SEK
1,500.00
1,200.00
1,500.00
900.00
SEK 2,800.00 $
SEK 2,700.00 $
SEK 6,000.00 $
SEK 2,000.00 $
20.05
16.04
20.05
12.03
$
$
$
$
37.43
36.09
80.20
26.73
9.00%
7.00%
9.00%
5.00%
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
SEK 8,000.00 SEK 15,000.00 $ 4,658,259.19 $ 8,734,235.98
SEK 1,500.00 SEK 3,000.00 $ 873,423.60 $ 1,746,847.20
SEK 650.00 SEK 1,400.00 $ 378,483.56 $ 815,195.36
SEK 500.00 SEK 1,000.00 $ 291,141.20 $ 582,282.40
SEK 1,500.00 SEK 2,500.00 $ 873,423.60 $ 1,455,706.00
N/A SEK 16,000.00 N/A $ 9,316,518.38
2012 Global Market Report n www.naiglobal.com 60