The number of occupants and the space required per occupant are the key determinates to total cost of occupancy. Consider that the occupancy costs are the multiplication of the rental rate per square foot plus the operating costs per square foot times the number of people and the space that each person occupies. There are factors that add to the total space consumption including lost space from hallways, bathrooms, elevator cores, storage areas, atriums and reception areas. This is often called the building loss factor and is an efficiency measure of the building. To these losses also add the space required for cafeterias, special computer and server rooms and conference, training areas and other special spaces. More >
As we round the 3th quarter 0f 2011, we are seeing that lenders are increasingly willing to sell notes/assets to clear up their books. With the real estate recovery under way, more sideline capital are chasing the few opportunities on the market and The increased demand is prompting distressed debt owners to place more of their inventory on the market. More >
I was pleased to see this article from Reuters reporting how Colombia’s agricultural future is improving and within a decade could become a small agro-industrial power. With the FARC beaten back and the Colombian government able to wrest control of most of the countryside, the land can now be returned to a more benign and productive use. According to the article, at least 41 million acres (16.5 million hectares) of agricultural land could be brought on-line. Colombia’s successful track record in generating domestic investment, combined with its ability to attract international investment, this sector should be booming in the not too distant future. More >
Since the beginning of 2011, there has been a torrid level of M&A activity in the commercial real estate services industry. Recently announced deals include CBRE’s acquisition of the ING Real Estate fund management business; the sale of Newmark to financial derivatives house BGC; Colony Capital’s loan and exclusive look period with Grubb & Ellis; the recapitalization of DTZ by investment group SGP and the possible follow on merger with BNP Real Estate; and the hotly rumored takeover of King Sturge by JLL. And that is just on the services side. On the information side, Argus is selling to Altus and Costar is acquiring Loopnet.
NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announced today it is expanding its coverage into Mumbai, India with the signing of Sure Shot Suggestions ( India ) Pvt. Ltd. The firm will now operate as NAI Sure Shot Suggestions.