New York has received more investment in commercial property than any other destination in the world so far this year. According to figures published by Cushman and Wakefield, the US city saw investment rise by 165 per cent in the nine months to September. Meanwhile, London took the second spot, although the UK capital tops the table in terms of levels of overseas investment. While there are more US locations in the top 25 cities for growth, European and Asian destinations dominate in terms of targets for offshore investment.
Breaking down investment volumes into sectors, Cushman and Wakefield noted that London is the most popular city for those seeking offices, with New York in second place. In the retail category, Hong Kong topped the list, followed by Germany's Rhine-Ruhr region and New York. Industrial investment, however, has been firmly focused on Singapore.
Despite slipping into second place for office investments, New York's Manhattan central business district (CBD) experienced its best third quarter since 1998, the organisation revealed. Leasing activity in the CBD has increased by 28 per cent in the first nine months of the year, compared to the same period in 2010. According to Cushman and Wakefield, Manhattan's commercial property space amounts to some 393 million sq ft, making it the biggest CBD in the US. Joseph Harbert, chief operating officer for the New York metro region at the firm, commented that commercial real estate fundamentals in Manhattan have improved during the third quarter of the year, largely due to the high levels of leasing activity.
Looking ahead at the global commercial property investment market, head of Europe, Middle East and Africa capital markets at the organisation Michael Rhydderch stated: "In the short term, investors are likely to stay close to prime core assets, but with supply scarce and prices for the best stock high, we will see more adventurous buying plans emerging next year." He went on to predict that there could be further polarisation between prime and secondary assets during 2012, even if the gap between prime and second-grade cities narrows.
- Monday 10 October 2011