Posts tagged office space
In a week when Mervyn King, the Governor of the Bank of England forecasts slower UK growth and higher inflation, Office rents on one of London’s most famous streets, Savile Row are set to break through £100 per sq.ft once again.
US Hedge Fund York Capital Management are reported to have paid £97.50 per sq ft for offices at 23 Savile Row.
The wags delighting in pointing out that equates to almost twice the price per sq ft of a suit from a respectable tailor on the famous street. More >
NAI Global, the world’s premier global network of commercial real estate firms and one of the largest real estate services providers worldwide, today announced Jay B. Olshonsky has joined the NAI Global New York City team as Executive Vice President & Chief Operating Officer. More >
As compared to typical office and industrial site selection, call centers demand more information about the availability and cost of labor than about the buildings. Call centers evaluate potential state, county and city incentives that are available based on the number of employees and the wage levels of its employees. The reason for this focus is the economic impact of the employee’s salaries over the term of the lease on the local community. More >
Sam Zell, appearing on CNBC’s Squawk Box earlier this month, reiterated several interesting points about current market conditions and trends in the commercial real estate sector:
- We haven’t built anything in the U.S. since mid-2007, and except for some apartments we are not going to build anything significant for another two to three years.
- Existing space is being filled at rates 20-30% lower than 2007.
- Commercial real estate is not the next shoe to drop – you don’t have destruction without oversupply and we don’t have oversupply.
- There is a direct correlation between filling of buildings and the end of pretend and extend – until now banks have been able More >
Trophies vs. Trash – it’s just one way to explain what is happening in today’s commercial real estate market. The Trophies are those main-and-main, big city stabilized assets that are the envy of every serious institutional owner. And because the number of those assets is finite and the capital chasing them seemingly endless, prices–believe it or not–are going up and cap rats are being compressed.
The sales of those few Trophy assets are also the ones that major publications report on when they declare that the worst is over. The recent sale of the Pritzker/Hyatt Office Building in downtown Chicago is an example of a trophy selling to California-based The More >