Posts Tagged ‘industrial’

Tokyo Records Highest Warehouse Rentals Globally In 2010

May 2, 2011

Asia Pacific warehouse demand is expected to take a dip due to the impact on the regional trade after the March 11 earthquake and tsunami in Japan

May 2, 2011, Bangkok – Colliers International recently released the Global Industrial Highlights – Second Half 2010, with Asia Pacific emerging yet again as the most robust region, North America registering a pick-up in leasing activity while Europe, Middle East and Africa (EMEA) reported a modest growth.

In terms of warehouse rental, Tokyo topped the world at USD 22.56 as of end 2010. This is followed by London – Heathrow, Zurich, Hong Kong and Geneva – the global top five industrial warehouse rentals.

Asia Pacific
In the second half of 2010, exports in many countries posted encouraging growth rates, with healthy economic growth in the region and exporters boosting sales both within the region and globally.  Asia Pacific continued to be the world’s most robust region.  Across most markets in Asia Pacific, warehouse rentals were steady or in upward swing.  Tokyo’s warehouse rentals were the highest at the end of 2010, followed by Hong Kong and Singapore at the 4th and 7th spot respectively.

Thailand witnessed a continued surge in industrial estate activity over the course of 2010 with an additional supply of 8,914 rai (3,523 acres) of Serviced Industrial Land Plots being added to the market.

However, with Japan’s devastating earthquake on March 2011, trade across the region will feel some effects with demand for warehouse space in the region expected to be sluggish compared to 2010. Disruptions in the supply chain have been felt in Thailand, a strong manufacturing base for Japanese companies. However over the medium and long term Thailand is expected to benefit as Japanese multinationals consider moving more production away from its own shores.

North America
Both the United States and Canadian warehouse market registered a noticeable pick-up in the second half of 2010.  Warehouse demand in the United States was concentrated in a number of port-related markets, while in Canada, most markets recorded a fairly brisk period in the second half of 2010.  Meanwhile, with a return of demand and continued drop-off in construction, vacancies in Canada and the United States decreased.

Amid signs of economic recovery in both countries, occupancy gains are expected to be sizeable in 2011 given healthy gains in manufacturing and a continued bounce-back in consumer spending.  However, rentals are expected to remain largely directionless this year.  Taking the second half of 2010 as an example, rental in United States fell 2.9% while those in Canada increased marginally by 0.2%.

EMEA
In EMEA, various markets were characterised by sluggish leasing activity and little expansion.  Warehouse rentals again kept steady in the second half of 2010, similar to the first six months in the year, although Europe is home to some of the most expensive warehouse rentals in the world.  For example, London – Heathrow, Zurich and Geneva were included in the top five most expensive warehouse rentals in the world.

London – Heathrow not only registered the most expensive warehouse rentals in EMEA, its prime industrial land prices at USD 56.82 per sq ft was the highest in the region and remained far in excess of any other markets in EMEA.

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RICS Thailand announces the new appointment of new Chairman and office bearers (2011-2012)

January 22, 2011

RICS (Royal Institution of Chartered Surveyors) announced today the new Chairman and office bearers for its Thailand board were elected on 13 January, 2011 (Thursday) for a one year term of office with immediate effect.  

Patima Jeerapaet, PhD, MRICS, MVAT, MTVA, is Managing Director of CIT (Colliers International Thailand) Property Consultants Co Ltd, a global real estate services firm equipped with more than 23 years of knowledge of Thailand’s property market.  In addition, he also chairs the Property Committee of Joint Foreign Chamber of Commerce in Thailand (JFCCT) in monitoring and enhancing Thailand’s property industry’s competitiveness.  He also serves as board member of Thai-Singapore Chamber of Commerce and Thai-Swedish Chamber of Commerce to promote Thai properties to Singapore and Swedish investors. 

The newly elected office bearers and members of Thailand Board are as follows: 

Major Office bearers:
Chairman:       Patima Jeerapaet
Honorary Treasurer: Navaporn Wongurai
Honorary Secretary:   Nicholas Brown
Elected Members: Apibarn Ariyakulkarn
Roy Beevor
Sonthaya Vanichvatana
Janet Geddes

Ian Hamilton

Simon Landy

C P Leong

Sutee Sumatanonsak

 Dr Patima Jeerapaet, the first Thai elected as Chairman of RICS Thailand, says “I am honoured to take up the post and hope to build on the achievements of Ian Hamilton and the executive team.  Having built a presence in Thailand for more than ten years, RICS Thailand has over 100 Chartered Surveyors practicing in the country.  I foresee the market of Thailand will continue to grow and become one of the key markets in South East Asia. I am looking forward to further strengthen membership services locally and create a strong RICS brand by working closely with fellow board members and staff of RICS.” 

About RICS & RICS Asia  

RICS (Royal Institution of Chartered Surveyors) is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. 

RICS is the worlds’ leading qualification when it comes to professional standards in land, property and construction. With over 150,000 members globally, RICS represents, regulates and promotes the work of property professionals throughout 146 countries. 

RICS Asia supports a network of over 11,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members. 

RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People’s Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam.

Investing in Thai property market, be ready for the big changes, AEC 2015!!

January 17, 2011

Thailand’s property market is considered one of the major business sectors in Thailand which is inevitably on the boom with the economical development of the country.

Thailand has passed its turbulences in year 2010 which is considered one of the most difficult years in the Thai history as well as for businesses in all sectors. Surprisingly, despite the political turbulence, many huge deals were closed during 2010.  In fact, some property investment sales did hit the highest record.  This is an indication of high confidence in the property sector as investing in a property is a long term investment.

The property market is mainly categorized into 5 different sectors which includes: industrial, commercial, residential, retail and hospitality.  But when property is talked or discussed about, the general public will most likely perceive on the residential market or condominiums. So, what about the property market in Thailand? Will prices go up in 2011?  Is there really scarcity of land? Is it equilibrium for the property market and what will happen in 2011?

We have so many questions on our minds. There is no doubt that prices of property along the BTS or MRT lines will increase continuously because of the limited amount of land and the high demand.  This is a scarcity amongst developers because these are considered the prime locations.  However in the future, should these lines expand, I believe that land along the extended lines would then become more attractive for developers. 

For year 2011 – the right defined statement would be “Certainty is uncertainty”. We should be ready to surf the changing wave if there is any!! We should plan for uncertainty and be ready to apply all strategies for each challenge and each circumstance.

Judging from the Q4, 2010, I would view the Thai property marketing in each sector for below for 2011.

Industrial
Many key industrial estate developers were able to achieve their targets in 2010.  The overall industrial market seemed to have improved and growth is expected by 10% in 2011, especially in manufacturing, automobile and parts, electronics and IT businesses.  There are also more demand from foreign and local manufacturers for the expansion of industrial estates. The many concern for the industrial sector would be Environment Impact Assessment (EIA) and Health Impact Assessment (HIA).

Commercial
The office market has improved slightly especially for Grade B office buildings because of the extended mass transit.  Many office buildings outside the CBD seem to attract interest from Tenants as well.  Within the CBD, many office buildings are adopting the trend of renovating their office buildings with a more modern look to retain existing tenants as well as attract new tenants. 
Where Regional Operating Headquarter (ROH) is concerned, no clear movement can be seen as yet but can expect to see results with 2011.  This year should be a brighter year for the office market. 

Residential
The overall residential market in 2010 mainly condominium was on the rise.  In 2011, this will rather be stable.  Condominium prices ranging between 80,000 – 120,000 baht per square meter will still be available within the city while on the outskirts prices would range between 50,000 – 75,000 baht per square meter.  Upper-end condominiums for foreign investment have slowed down because of the strong Thai currency there are still some investors who look for quality products at bargained prices.  This year we can expect for developers to gear their interest to building town houses or detached houses along the new mass transit extension lines.

Retail
The retail market has shown continuous improvement.  Local demand continue to grow strongly but for tourists, this might be a little hesitant because of the strong Thai currency.  There are many newly launched retail projects, for example supporting retail space in residential projects and community malls along the new mass transit lines.

Many big retailers and department stores are also adopting the trend to renovating / face lift / re-branding their stores to attract shoppers both in the capital and upcountry.  There are also a number of new shopping centers which is likely to be completed in 2011.

Hospitality
For hotels industry in 2011, we can expect that there will be approximately 1,662 new rooms for the upper scale and luxury hotel.  Hotel investors look for long term investment.  Please do not perceive this to be an oversupply because the expected payback period for hotel investors in between 10 – 12 years.  Hotel investors invest with an objective for capital gain in the future.  The low labor costs, low material costs and low import cost since 2010 are striving hotel investors to seize the opportunity for construction.

Like other businesses, the property market also has its life cycle. Certain properties within the main business and shopping areas are also starting to rejuvenate their assets such as properties within the Sam Yan area of Chulalongkorn University properties, Bangkok Bazaar and Langsuan of Crown Property Bureau, some old shop house projects along Sukhumvit Roads and other main roads.

Nevertheless, there is another sector that the locals should look into as another choice of property investment.  This is the agricultural sector which is rather sensitive, complex and controversial with regards to property rights and cultural rights.  This is an opportunity for the local property investors and is a way for life’s sustainability as well.

Another major change in the Thai property market we look towards in 2011, is the possibility of leasehold extension that will encourage and assist Thai developers, Thai investors as well as foreign investors in their property investment.  This will also bring in foreign direct investment into the country.

Looking a little bit further, the major change in 2015 would be the Asian Economic Community (AEC) which will positively impact the property market in all sectors as well as transportation and logistics. The high speed trains from China and the roads connecting countries will hugely benefit Thailand.  AEC will open up businesses amongst the Asian countries.  Geographically with Thailand in the center of many countries, Thailand will have a larger distribution channel.  The public may be scared of over supply of condominiums but once AEC is introduced this will no longer be on ‘over supply’ as we will have more demand for residential.  There will be a higher possibility and opportunities for Commercial, Industrial, Retail and Hospitality sectors as well..

Some of the property investment tips are:
1. Aim for best price, high return with low risks
2. Be well aware of the rules & regulations
3. Select for good location
Use them wisely and they could make you rich. 

Dr. Patima Jeerapaet is the Managing Director of Colliers International Thailand
Please feel free to drop your comments or questions to patima.jeerapaet@colliers.com

Asia Investors Show Greater Optimism Pointing to a Full Upswing in Real Estate Markets

November 18, 2010

73% Expected to Expand Their Portfolio; 59% of Investors Eye on Overseas Investment
(Shanghai, Hong Kong and Singapore are Preferred Investment Targets in Asia)

Most commercial real estate markets around the world have passed the bottom and are now on the rise, according to the majority of respondents in the Colliers International Global Investor Sentiment Survey for the third quarter of 2010.  In Asia, investors appear to be even more optimistic with 91% of respondents expressing a desire to buy property in their domestic region, and 73% considering to expanding their property portfolio in the coming 12 months. 

Shanghai in China, followed by Hong Kong and Singapore, were the most-preferred hot spots for Asian investors looking to buy office space over the next 12 months.  Shanghai is on its way of recovery; Hong Kong and Singapore are expected to have further upside in the office sector.  Individual investors reported their intention to pursue residential investment opportunities in second-tier Chinese cities such as Nanjing and Hangzhou.

Moving from 6 o’ clock on the global property clock in 1Q, the average time today according to Asian investors is slightly past 7 o’ clock.  In the coming 12 months, the Asian market is predicted to have moved towards between 8 and 9 o’ clock. And in both cases, the greatest number of respondents sees the market growing at an even faster rate.

“The survey shows that Asian investors are confident on the macro-fundamentals in the region,” said Piers Brunner, chief executive officer, Asia. “Personal and corporate debt levels are low.  Interest rates are low and liquidity is high. Optimism in the market is reinforced by 75% of respondents in Asia saying a double-dip recession is unlikely.”

However there are concerns among Asian investors, such as the uncertainties on government policies to cool the overheated markets, change in market liquidity and interest rate increases.

MORE ASIAN INVESTORS EXPECT TO EXPAND THEIR PORTFOLIO

Looking ahead to the next 12 months, the largest group of Asian investors (73%) expect to expand their property portfolio.  This figure was higher than the 65% registered in 1Q 2010.  The next largest group of respondents (18%) expect to rebalance the size of their portfolio over the coming year.

STRONG DESIRE TO BUY PROPERTY IN ASIA

The desire to buy property in Asia among Asian investors continues to rise.  91% of respondents expressed a desire to buy property in their domestic region, compared to 78% in 1Q 2010. The high percentage can be explained by the growth expectations in Asia, primarily driven by the Chinese market. 

While globally only 30% of respondents considered investments outside their domestic markets, 59% of respondents in Asia reported a desire to buy overseas properties. They would prefer Sydney office and Brisbane retail assets in Australia.  Others think office properties in New York and Chicago would offer good market entry points amid the prevailing low real estate prices.

NEW OPTIMISM POINTS TO AN UPSWING IN REAL ESTATE MARKETS ACROSS THE WORLD

Globally, the largest group of survey respondents put the Global Property Clock for their particular regions at eight o’clock, with the second and third largest groups at six and seven o’clock, respectively. These responses indicate that most markets globally are on the upswing and are characterized by rising demand, falling availability and vacancy and rising headline rents. This marks a significant move from Colliers International’s last Investor Sentiment Survey conducted in Q1 2010, when most respondents placed their markets at between five and six o’clock.

 

Some additional key global findings of Colliers International’s Q3 2010 Global Investor Sentiment Survey include:

  • 90% of respondents said they planned to expand their current level of real estate holdings within a year or maintain them at current levels.
  • New York, Chicago, San Francisco, Washington, London, Sydney, Singapore and Hong Kong were listed as key cross-border investment destinations. Emerging markets mentioned include Poland, Ukraine and Brazil.

Nearly 80 percent think debt will be easier to access in the next 12 months. Respondents who said they believe the cost of debt would rise in the next 12 months fell slightly from the first quarter of 2010, with 44 percent predicting an increase versus 52 percent six months ago.

KEY REGIONAL FINDINGS

  • In Western Europe, 62% of respondents now intend to make cross-border investments, a notable increase from the figure of 30% for Q1 2010.
  • In United States, a significantly greater proportion of investors (65%) indicated they are considering selling property over the next 12 months versus the Q1 2010 response of 23 percent.
  • In the next 12 months, fewer Pacific (Australia and New Zealand) investors (46%) expect to expand their property portfolio compared to the 68% who expected to expand in Q1 2010.
  • Among investors from the Middle East and Africa, 63% stated that they would be looking to actively reduce risk levels, with 25% indicating they would look to increase the diversification of their portfolio, implying an overall degree of risk management.
  • Across Central and Eastern Europe, the range of locations being targeted by investors was quite diverse, although Warsaw remains the most popular destination, notably for office product. Other popular targets quoted were Kiev, Prague, Moscow and Bucharest.

Among Latin American investors, 69 percent of those surveyed reported they will not reduce their risk levels.

  • 67 percent of the investors surveyed in Canada think that prime effective rents for the office market will either hit bottom by Q2 2011 or have already hit bottom. In the industrial market, 78 percent of investors think the bottom has either been reached or will be reached by Q2 2011 and that percentage jumps to 83 percent for retail.

Moving from 6 o’ clock on the global property clock in 1Q, the average time today according to Asian investors is slightly past 7 o’ clock.  In the coming 12 months, the Asian market is predicted to have moved towards between 8 and 9 o’ clock. And in both cases, the greatest number of respondents sees the market growing at an even faster rate.

 

“The survey shows that Asian investors are confident on the macro-fundamentals in the region,” said Piers Brunner, chief executive officer, Asia. “Personal and corporate debt levels are low.  Interest rates are low and liquidity is high. Optimism in the market is reinforced by 75% of respondents in Asia saying a double-dip recession is unlikely.”

However there are concerns among Asian investors, such as the uncertainties on government policies to cool the overheated markets, change in market liquidity and interest rate increases.

 

MORE ASIAN INVESTORS EXPECT TO EXPAND THEIR PORTFOLIO

Looking ahead to the next 12 months, the largest group of Asian investors (73%) expect to expand their property portfolio.  This figure was higher than the 65% registered in 1Q 2010.  The next largest group of respondents (18%) expect to rebalance the size of their portfolio over the coming year.

 

 

STRONG DESIRE TO BUY PROPERTY IN ASIA

The desire to buy property in Asia among Asian investors continues to rise.  91% of respondents expressed a desire to buy property in their domestic region, compared to 78% in 1Q 2010. The high percentage can be explained by the growth expectations in Asia, primarily driven by the Chinese market. 

 

While globally only 30% of respondents considered investments outside their domestic markets, 59% of respondents in Asia reported a desire to buy overseas properties. They would prefer Sydney office and Brisbane retail assets in Australia.  Others think office properties in New York and Chicago would offer good market entry points amid the prevailing low real estate prices.

 

 

NEW OPTIMISM POINTS TO AN UPSWING IN REAL ESTATE MARKETS ACROSS THE WORLD

Globally, the largest group of survey respondents put the Global Property Clock for their particular regions at eight o’clock, with the second and third largest groups at six and seven o’clock, respectively. These responses indicate that most markets globally are on the upswing and are characterized by rising demand, falling availability and vacancy and rising headline rents. This marks a significant move from Colliers International’s last Investor Sentiment Survey conducted in Q1 2010, when most respondents placed their markets at between five and six o’clock.

 

 

Some additional key global findings of Colliers International’s Q3 2010 Global Investor Sentiment Survey include:

  • 90% of respondents said they planned to expand their current level of real estate holdings within a year or maintain them at current levels.
  • New York, Chicago, San Francisco, Washington, London, Sydney, Singapore and Hong Kong were listed as key cross-border investment destinations. Emerging markets mentioned include Poland, Ukraine and Brazil.

Nearly 80 percent think debt will be easier to access in the next 12 months. Respondents who said they believe the cost of debt would rise in the next 12 months fell slightly from the first quarter of 2010, with 44 percent predicting an increase versus 52 percent six months ago.

 

KEY REGIONAL FINDINGS

  • In Western Europe, 62% of respondents now intend to make cross-border investments, a notable increase from the figure of 30% for Q1 2010.
  • In United States, a significantly greater proportion of investors (65%) indicated they are considering selling property over the next 12 months versus the Q1 2010 response of 23 percent.
  • In the next 12 months, fewer Pacific (Australia and New Zealand) investors (46%) expect to expand their property portfolio compared to the 68% who expected to expand in Q1 2010.
  • Among investors from the Middle East and Africa, 63% stated that they would be looking to actively reduce risk levels, with 25% indicating they would look to increase the diversification of their portfolio, implying an overall degree of risk management.
  • Across Central and Eastern Europe, the range of locations being targeted by investors was quite diverse, although Warsaw remains the most popular destination, notably for office product. Other popular targets quoted were Kiev, Prague, Moscow and Bucharest.
  •  Among Latin American investors, 69 percent of those surveyed reported they will not reduce their risk levels.
  • 67 percent of the investors surveyed in Canada think that prime effective rents for the office market will either hit bottom by Q2 2011 or have already hit bottom. In the industrial market, 78 percent of investors think the bottom has either been reached or will be reached by Q2 2011 and that percentage jumps to 83 percent for retail.

 The Colliers International Q3 2010 Global Investor Sentiment Survey was conducted from August 15 to September 7, 2010. Major institutional and private investors across the globe participated. The primary purpose of the survey is to better understand global investor attitudes in the current marketplace at a global and regional level, including investors’ outlook for the coming 12 months.

Colliers International Integrates Services under a Single Brand

June 14, 2010

Colliers International Integrates Services under a Single Brand
— World’s Third Largest Commercial Real Estate Services Firm
Aligns Global Operations to Provide Clients with Seamless Services —

10 May 2010, Bangkok — Colliers International marks a key milestone today in launching its new global brand—a critical step in the integration of its global operating platform and service lines. The rebranding, which includes a modernized logo and global media campaign, follows the announcement earlier this year that Colliers International and FirstService Real Estate Advisors (FirstService REA) are combining operations under the Colliers International brand. 

This marks the final step in Colliers’ transition from a decentralized affiliate model to a more centrally owned and operated business with an industry-unique operating and partnership model.  With approximately 70% under a single owner, FirstService REA, and the remaining equity retained at the local level, Colliers is able to provide clients with the highest level of accountability and service across their entire platform. The model allows Colliers International to attract and retain the industry’s leading talent, which directly benefits its clients through differentiated levels of client service.

“This is a landmark day in the history of Colliers International,” said Piers Brunner, Chief Executive Officer of Colliers International in Asia.  “We’ve integrated our services platform to create a true global commercial real estate powerhouse.  This integration, coupled with our investments in technology, platform services and professional development, provide our clients with seamless access to the highest level of service, in Asia and across the world.”

Included in the new branding are FirstService Real Estate Advisors, which provides corporate solutions and property and asset management services, FirstService Williams (the New York Tri-State hub for Colliers International), FirstService PGP Valuation and PKF Capital – Hotel Brokerage Services. All of these firms, as well as all offices in markets across the world, will now be known collectively as Colliers International.

“Colliers International is focused on accelerating success—for our clients, for our people and for our communities,” said Douglas Frye, global president and CEO of Colliers International.  “We’ve grown our platform and enhanced the depth and scope of our services into a top tier global commercial real estate services enterprise and now the world can expect seamless service delivery from one organization, one name and one brand.”

The rebranding is taking place in the U.S, followed by the United Kingdom in May and the Asia Pacific in the last quarter of 2010.